Question : The price of one shirt is INR 700 in a shop, on which a 10% discount is available for all customers. An additional 20% discount is there for the customers who pay in cash. What is the amount a customer has to pay for a shirt if he pays in cash?
Option 1: INR 432
Option 2: INR 504
Option 3: INR 523
Option 4: INR 514
Correct Answer: INR 504
Solution :
The marked price of the shirt = INR 700
1st discount = 10%
2nd discount = 20%
We know that,
For two successive discounts selling price
= $\frac{100-\text{Discount}_1\%}{100}× \frac{100-\text{Discount}_2\%}{100}×$ marked price
= $\frac{100-10}{100}× \frac{100-20}{100}×700$
= $\frac{90}{100}× \frac{80}{100}×700$
= $504$
Hence, the correct answer is INR 504.
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