A manufacturer who marks the price of an article at Rs 1,800, sells it to a discount of 15%. The dealer gets a further discount of 8% on his net payment for paying in cash. What amount (to the nearest rupee) does the dealer pay to the manufacturer?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 1408
Given:
Marked price = Rs. 1800
Discount1 = 15%
Discount2= 8%
Formula used:
Effective discount = Discount1 + Discount2 - (Discount1 × Discount2)/100 ---- (1)
Calculations:
Using equation (1), we get
Effective discount = 15 + 8 - 1.2 = 21.8%
Selling price = Marked price(1 - effective discount/100)
⇒ 1800(1 - 0.218)
⇒ 1407.6 1408