Question : A shopkeeper allows a 10% trade discount and a 10% cash discount. If the marked price is INR 1,000, then the selling price is:
Option 1: INR 900
Option 2: INR 850
Option 3: INR 810
Option 4: INR 920
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Correct Answer: INR 810
Solution : Single equivalent discount = $(a+b-\frac{a×b}{100}$)%, where $a$% and $b$% are successive discounts. Effective discount for two successive discounts of 10% and 10% $=10+10-\frac{10×10}{100}=20-1=19\%$ So, the selling price = $\frac{100-19}{100}×1000=\frac{81}{100}×1000$ = INR 810 Hence, the correct answer is INR 810.
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