A shopkeeper was offering two successive discounts of 20% and 15% on an item whose marked price is ₹1,000, while another shopkeeper was offering a flat 33% discount on the same item. Find the positive difference in the nominal amounts of discounts given by the two shopkeepers on the sale of the item.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹10
A shopkeeper was offering two successive discounts of 20% and 15% on an item whose marked price is ₹1,000.
Price of an item after the discount = 1000 of (100 - 20)% of (100 -15) %
= 1000 of 80% of 85%
= 1000 × 80/100 × 85/100
=680
So discount=1000 - 680 = 320 Eq.(i)
while another shopkeeper was offering a flat 33% discount on the same item.
Discount offered by another shopkeeper = 1000 of 33%
= 330 Eq. (ii)
Positive difference in the nominal amounts of discounts given by the two shopkeepers on the sale of the item = Eq. (ii) - Eq. (1)
= 330 - 320
= 10