A person first increases the price of a commodity by 8% and then he announces a discount of 18% The actual discount (in%) on the original price is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 11.44.
Let the original price of the commodity be 100x
The new price = 100x + (8/100) × 100x = 100x + 8x = 108x
Discount = 18%
The discount amount = (18/100) × 108x = 19.44x
Final selling price = 108x - 19.44x = 88.56x
Discount amount = 100x - 88.56x = 11.44x
Discount percentage = (11.44x /100x) × 100 = 11.44%
Therefore, the actual discount on the original price is 11.44%.