A shop owner offers the following discount options on an article to a customer:
Which one of the following is correct?
- Successive discounts or 10% and 20%, and then pay a service tax of 10%
- Successive discounts of 20% and 10%, and then pay a service tax of 10%
- Pay a service tax or 10% first, then successive discounts of 20% and 10%
This questions was previously asked in
Complete-Test, Previous year (2020)
1 only is the best option for the customer.
Incorrect Answer2 only is the best option for the customer.
Incorrect Answer3 only is the best option for the customer.
Incorrect AnswerAll the options are equally good for the customer.
Correct AnswerExplanation:
Sol. Ans.(d). All the options are equally good for the customer.
Case 1 –Let the price of the article = 100, after first discount of 10% it will be of 90. After second discount of 20% it will be 90 – 18 (20% of 90) = 72. And after services tax, it will become 72 – 7.2 (10% of 72) = 64.8.
Case 2 Let the price of the article = 100, after first discount of 20% it will be of 80. After second discount of 10% it will be 80 – 8 (10% of 80) = 72. And after services tax, it will become 72 – 7.2 (10% of 72) = = 64.8.
Case 3 Let the price of the article = 100, after 10% service it will be of 90. After second discount of 20% it will be 90 – 18 (20% of 90) = 72. And after the last discount of 10% it will become 72 – 7.2 (10% of 72) = 64.8.
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By: Brijesh Kumar