Question : A trader allows a 20% trade discount and a 30% cash discount. If the list price is INR 1,200, the selling price (in INR) is:
Option 1: 627
Option 2: 720
Option 3: 762
Option 4: 672
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Correct Answer: 672
Solution : List Price = INR 1200 Selling Price = $\frac{100-Discount_1\%}{100}× \frac{100-Discount_2\%}{100}×$ Marked Price ⇒ Selling Price = $\frac{80}{100}× \frac{70}{100}×$ 1200 = INR 672 Hence, the correct answer is 672.
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