A tractor is sold after allowing three successive discounts of 10%, 5% and 2%. If the marked price of the tractor is Rs 4,88,000, find its net selling price.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Rs 4,08,895.2
According to question,
Three successive discounts = 10%, 5%, and 2%
For the first 10% discount on MP,
Selling price = 488000 - 10% × 488000
Selling price = 488000 – = 488000 - 48800 = Rs 4,39,200
Now another 5% discount on new MP,
Selling price = 439200 - 5% × 439200
Selling price = 439200 - = 439200 – 21960 = Rs 4,17,240
Now, 2% final discount on new MP,
Net selling price = 417240 - 2% × 417240
Net selling price = 417240 - = 417240 - 8344.8 = Rs 4,08,895.2