The marked price of every item being sold by a wholesaler was Rs.400. The wholesaler was offering a stock-clearance sale, under which for every four items paid for, one item was being given free. In addition to that, a further 5% discount on the amount payable on the ‘Buy 4, Get 1 free’ scheme price was being offered to anyone making purchases worth more than Rs.15,000. Rameshwar made purchases for which the amount payable, before applying the 5% discount, was Rs.16,000. What was the effective discount percentage that was finally offered to Rameshwar during this transaction?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 24%.
Total items purchased = 16000/400 = 40
Under the scheme, he gets 40/4 = 10 free items
Total items received = 50
Total MP without discount = 50 × 400 = 20000
Final amount paid = 16000 × 0.95 = 15200
Discount percentage = [(20000 - 15200)/20000] × 100 = 24%