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Question
A whole seller allows 25% trade discount and 5% cash discount. What will be the net price of an article marked at ₹ 1,600?
Solution
The article is marked at ₹ 1,600 i.e. its list price is ₹ 1,600.
Wholesaler allows 25% trade discount.
∴ Trade discount = 25% of List price
= 25% of ₹ 1,600
`= 25/100 xx 1600` = ₹ 400
Invoice Price = List price – Trade discount
= 1,600 – 400 = ₹ 1,200
Also, the wholesaler allows 5% cash discount
∴ Cash discount = 5% of invoice price
= 5% of ₹ 1,200
`= 5/100 xx 1200` = ₹ 60
∵ Net price = Invoice price – Cash discount
= 1,200 - 60
∴ Net price = ₹ 1,140
∴ Net price of the article is ₹ 1,140.
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