A tractor manufacturing company sells each tractor for ₹5,00,000. Assuming that KISAN firm buys 50 tractors from them as a part of an annual contract, the company offers a trade discount of 10% to KISAN and an additional 2% discount if the payment is made within 30 days. What will be the amount payable by KISAN within 30 days for the consignment?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹22,050,000.
Total list price of 50 tractors = 500000 × 50 = 25000000
Final amount payable by KISAN = 25000000 × (9/10) × (98/100) = 22050000