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Question
A trader offers 25% discount on the catalogue price of radio and yet makes 20% profit. If he gains ₹ 160 per radio, what must be the catalogue price of the radio?
Solution
Let the catalogue (list) price of the radio be ₹ 100.
The trader offers 25% discount on the catalogue price.
∴ Trade discount = 25% of catalogue price
= 25% of ₹ 100
`= 25/100 xx 100`
∴ Trade discount = ₹ 25
Now, Selling price = Catalogue price – Trade discount
= 100 - 25 = ₹ 75
Also, he gets 20% profit.
Let the cost price be ₹ 100,
∴ Selling price = Cost price + Profit
= 100 + 20% of cost price
`= 100 + 20/100 xx 100`
= 100 + 20
= ₹ 120
∴ For selling price of ` 75,
Cost price = `(100 xx 75)/120` = ₹ 62.5
∴ Profit = Selling price – Cost price
= 75 - 62.5
∴ Profit = ₹ 12.5
Now, if the catalogue price is ` 100, then profit is ₹ 12.5.
∴ For profit of ₹ 160
Catalogue price = `(100 xx 160)/12.5` = ₹ 1280
∴ Catalogue price of the radio is ₹ 1,280.
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Solution: Banker’s Discount
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Date of drawing = 5th January 2019
Period = 8 months
Nominal due date = `square`
Legal due date = `square`
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∴ B.D. = `("F.V." xx "n"/365 xx "r")/100`
∴ 320 = `(8000 xx "n"/365 xx 10)/100`
∴ n = `square` days
| April | May | June | July | Aug | Sep | Total |
| 15 | 31 | 30 | 31 | 31 | `square` | `square` |
∴ Date of discounting is `square`
