A shopkeeper offers 25% discount on all the toys. He offers a further discount of 5% on the reduced price to those customers who pay in cash. How much does a customer have to pay (in ₹) in cash for a toy of ₹510? (Correct to two decimal places)
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 363.38.
Final price after discount = Original price × (1 - Discount rate)
Further discount price = Reduced price × (1 - Further discount rate)
Price after first discount:
⇒ Reduced price = ₹510 × (1 - 0.25)
⇒ Reduced price = ₹510 × 0.75
⇒ Reduced price = ₹382.50
Price after further discount for cash payment:
⇒ Final price = ₹382.50 × (1 - 0.05)
⇒ Final price = ₹382.50 × 0.95
⇒ Final price = ₹363.38