A shopkeeper sells shirts at ₹800 per shirt. He gives a 10% discount to all customers who make full payment in cash, and two shirts free to customers who buy 10 shirts at a time. If a customer wants to avail both types of discounts, which net effective discount can he avail? (The shopkeeper charges for 10 shirts but gives two additional shirts for the same price. This is just for clarity and not as part of the question. The language of the question is correct.)
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 25%.
On buying 10 shirts he gets 2 shirts free and a discount of 10% on paying full cash.
Total cost of buying 10 shirts without any discount = 10 × 800 = 8000
Cost of shirts after 10% discount on paying full cash = 90% of 800 = Rs. 720
So, cost price of 10 shirts in cash payment = 10 × 720 = 7200
So, he got 12 shirts for Rs. 7200.
So, cost price of 1 shirt = 7200/12 = Rs. 600
So, discount on 1 shirt = (800 - 600)/800 × 100 = 1/4 × 100 = 25%