A manufacturer announces a trade discount of 30% on his products for his dealers. One of the dealers purchased 6 smart phones manufactured by the company at the rate of Rs.25,000 each. What is the amount of trade discount?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Rs.45,000.
The price of one smartphone = Rs. 25,000
The price of six smartphones = 25000 × 6 = Rs. 1,50,000
The total discount percentage = 30%
The total discount = (30/100) × 150000 = Rs. 45,000
Therefore, the trade discount amount is Rs. 45,000.