Question

A wholesaler allows 25% trade discount and 5% cash discount.  Find the list price of an article, if it was sold for the net amount of Rs 1,140.

Answer 1

Let x be the list price. 

 Trade discount at 25% = `"x" xx 25/100 = "x"/4`

Invoice price = `"x" - "x"/4`

`= "x"(1 - 1/4)`

`= "x"(3/4) = "3x"/4`

Cash discount at 5 % =`(3"x")/4 xx 5/100 = ("3x")/80`

Net selling price = Invoice price - cash discount

`= "3x"/4 - "3x"/80`

`= "57 x"/80`

But given that net selling price = Rs 1140.

`therefore 1140 = "57x"/80`

`therefore  "x" = (1140 xx 80)/57 = 1600`

∴ The lit price is Rs 1600.