Profit and Loss – Successive discounts on a printed price (again): An electric heater has a printed price of Rs 160. If two successive discounts of 20% and 10% are given, how much does the buyer pay?
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ARs 112.00
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BRs 129.60
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CRs 119.60
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DRs 115.20
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ERs 108.80
Answer
Correct Answer: Rs 115.20
Explanation
Introduction / Context:As before, successive discounts must be applied multiplicatively. The second discount applies to the already reduced price, not the original printed price.
Given Data / Assumptions:
- Printed price = Rs 160
- Discounts = 20% then 10%
Concept / Approach:First reduce by 20% to get an intermediate price, then reduce the intermediate by 10% to get the final payable amount.
Step-by-Step Solution:After 20%: 160 * 0.80 = 128After additional 10%: 128 * 0.90 = 115.20
Verification / Alternative check:Combined factor = 0.80 * 0.90 = 0.72 ⇒ 160 * 0.72 = 115.20.
Why Other Options Are Wrong:129.60 and 119.60 use an incorrect factor; 112.00 or 108.80 are too low.
Common Pitfalls:Adding the percentages to claim a single 30% discount.
Final Answer:Rs 115.20