Chapter-16

Discount
Marked Price First discount = 20%
Amount of first discount
You might have seen while buying goods that on
every article there is a price marked. This price is 100  20
= Rs = Rs 20
known as the marked price. Marked price is also 100
called list price or printed price. Marked price is  Net amount = Rs 100 – Rs 20 = Rs 80
abbreviated as MP. Second discount = 5%
Amount of second discount
List Price
80  5
Elect rical goods, electr onics and ot her t hings = Rs = Rs 4
which are manufactured in a factory are marked 100
accroding to the price list supplied by the factory,  Price to be paid by the customer
at which the retailer is supposed to sell them. = Rs 80 – Rs 4 = Rs 76
This price is known as the list price. For books ( i ) Maruti Suzuki
etc, the printed price is marked price. Discount series = 5% , 20%
First discount = 5%
Discount Amount of first discount
In order to clear the stocks or to increase sales, 100  5
sometimes shopkeepers offer a certain per cent of = Rs = Rs 5
100
rebate on the marked price for cash payments. This
 Net amount = Rs 100 – Rs 5 = Rs 95
rebate is known as discount.
Second discount = 20%
The customer or buyer pays t he diff er ence
Amount of second discount
between the marked price and discount. Thus,
Selling Price = Marked Price – Discount 95  20
It should be noted that discount is given on = Rs = Rs 19
100
the marked price only.
 Price to be paid by the customer
Successive Discounts = Rs 95 – Rs 19 = Rs 76
Thus, selling prices of both the companies are
When two or more discounts are allowed one after equal. There is no difference in selling price and
the ot her , then such discounts are known as the customer may buy goods from any one.
successive discounts. Note: We have seen in the above example that it
In successiv e discount s, f ir st discount is makes no difference if we change the order
subtracted from the marked price to get net price of the discount series. By cummulative law
after the first discount. Taking this price as the of multiplication discount series 30% and
new mar ked pr ice, t he second discount is 10% is equal to the discount series 10%
calculated and it is subtracted from it to get net and 30% . Similarly series 25% , 15% and
price after the second discount. Continuing in this 15%, 25% are also equal.
manner, we finally obtain the net selling price. In the abov e example, selling pr ices of
The following examples will illustrate the above  80 95 
procedure. t wo f ir ms are Rs 100    and
 100 100 
“Hyundai Motors offers a series of discounts
20% and 5% and Maruti Suzuki offers a  95 80 
Rs 100    are equal.
discount series 5% and 20% . Which of the  100 100 
two offers is beneficial to the customer?”
Let us see how we can calculate the single Cash Discount
discount equivalent to successive discounts. When a retailer purchases some goods from a
( i ) Hyundai Motors manufacturer or wholesaler, he gets an invoice.
Discount series = 20% , 5% The meaning of invoice is ‘a list of goods sold or
302 Concept of Arithmetic

services provided together with the prices charged’. included the tax known as Value Added Tax (VAT).
The terms of the payment of the bills are written For example, Samir bought the following articles
on it. If the retailer makes the payment according from a departmental store:
to them, then he gets some discount for cash
payment. This discount is called cash discount. Rate per Rate of
Item Quantity
item (Rs) sales tax
2 1 n
The terms are like this: , , , ..... ie a Shirts 4 200.00 8%
10 20 30
discount of 2% if the payment is made within 10 Pair of shoes 2 350.00 10%
days, a discount of 1% if the payment is made Television 1 10900.00 10%
between 10th and 20th days and the payment must Tea Set 1 750.00 8%
be made within 30 days. The buyer thinks whether Calculate the total bill paid, including sales tax,
he should make the payment early or not—as on by Samir to the departmental store.
one side he gets 2% discount for cash payment— Here, We have,
on the other he can have interest on the money CP of 4 shirts = Rs 200 × 4 = Rs 800
for 1 month. Rate of sales tax = 8%
For example, an invoice is given below, what  Sales tax = 8% of Rs 800
will be payment if the payment is made in 2 days?
Quantity Article Rate  8 
= Rs   800  = Rs 64
4 dozen Pencils Rs 6 per dozen  100 
3 dozen Pens Rs 36 per dozen So, amount paid for 4 shirts
4 dozen Erasers Rs 12 per dozen = Rs (800 + 64) = Rs 864
CP of 2 pairs of shoes = Rs 350 × 2 = Rs 700
3 n Rate of sales tax = 10%
Terms : ,
10 30  Sales tax = 10% of Rs 700
First of all, we will find the amount of the bill  10 
for the goods mentioned in the invoice. = Rs   700  = Rs 70
 100 
Now, cost of 4 dozen pencils So, amount paid for 2 pairs of shoes
= Rs 6 × 4 = Rs 24 = Rs (700 + 70) = Rs 770

K KUNDAN
cost of 3 dozen pens CP of television set = Rs 10900
= Rs 36 × 3 = Rs 108 Rate of Sales tax = 10%
cost of 4 dozen erasers Sales tax = 10% of Rs 10900
= Rs 12 × 4 = Rs 48
 10 
Total amount = Rs 24 + Rs 108 + Rs 48 = Rs 180 = Rs  10900  = Rs 1090
Accor ding to t he t er ms ment ioned in t he  100 
invoice, 3% discount will be given if the payment So, amount paid for television set
is made withing 10 days. = Rs (10900 + 1090) = Rs 11990
 Discount for payment in 2 days CP of tea set = Rs 750
Rate of sales tax = 8%
 3   Sales tax = 8% of Rs 750
= Rs 180   = Rs 5.40
 100 
 8 
 Amount of payment = Rs 180 – Rs 5.40 = Rs   750  = Rs 60
 100 
= Rs 174.60
So, amount paid for tea set
Sales Tax and Value Added Tax (VAT) = Rs (750 + 60) = Rs 810
Hence, total amount of the bill
We know that the government imposes different = Rs (864 + 770 + 1190 + 810) = Rs 14434
types of taxes. Sales tax is one of these taxes. It is See another example, Waheeda bought an air
levied at the specified rate on the sale price of the cooler for Rs 3300 including a tax (VAT) of 10% .
items and it differs from item to item and state to Find the price of the air cooler before VAT was
state. Sales tax is calculated on selling price added.
(SP). Thus, if discount is given,first discount is The price includes the VAT, ie, the Value Added
calculated and then sales tax is calculated on the Tax. Thus, a 10% VAT means if the price without
selling price of the article. If there is no discount, VAT is Rs 100 then price including VAT is Rs
then sales tax is calculated on the marked (list) 110.
price of the article. Thus, the sales tax is charged Now, when pr ice including VAT is Rs 110,
by the government on the sale of an item. It is original price is Rs 100.
collected by the shopkeeper from the customer and Hence, when price including tax is Rs 3300,
given to the government. This is, therefore, always
on the selling price of an item and is added to the  100 
the original price = Rs   330  = Rs 3000.
value of the bill. These days, however, the prices  110 
Discount 303

Solved Examples
Ex. 1: At a clearance sale, all goods are on Ex. 5: A trader marks his goods at 20% above
sale at 45% discount. If I buy a skirt the cost price. If he allows a discount
marked Rs 600, how much would I need of 5% for cash payment, what profit
to pay? per cent does he make?
Soln: We have, Soln: Let the CP of the article be Rs 100.
MP = Rs 600, Discount = 45%  Marked price of the article = Rs 120.
 Discount = 45% of Rs 600 The trader allows a discount of 5% .
 SP = (100 – 5)% of Rs 120
 45 
= Rs   600  = Rs 270
 100   120  95 
= Rs   = Rs 114
 SP = MP – Discount  100 
= Rs 600 – Rs 270 = Rs 330 Since CP of the goods is Rs 100, hence
Thus, t he amount I need t o pay is the profit per cent = (114 – 100 =) 14%.
Rs 330. Ex. 6: A shopkeeper offers his customers 10%
Ex. 2: A fan marked at Rs 540 is offered at discount and still makes a profit of
Rs 496.80 due to off season. Find the 26%. What is the actual cost to him of
rate of discount offered. an article marked Rs 280?
Soln: Marked price of the fan = Rs 540 Soln: We have, marked price = Rs 280.
Off season price = Rs 496.80 Discount = 10% on marked price
Amount of off season discount
 10 
= Rs 540 – Rs 496.80 = Rs 43.20 = Rs   280  = Rs 28
 100 
43.20
 Rate of discount =  100 = 8%  SP = MP – Discount = Rs (280 – 28 )
540 = Rs 252
Ex. 3: List price of a Video cassette is Rs 100. Now, SP = Rs 252 and Gain = 26%
A dealer sells three Video cassettes for

K KUNDAN
100
Rs 274.50 after allowing discount at  CP =  SP
certain rate. Find the rate of discount 100  Gain%
allowed.
 100 
Soln: We have, = Rs   252 
List price of one Video cassette = Rs 100  100  26 
 List price of three Video cassettes
 100 
= Rs 300 = Rs   252  = Rs 200
SP of three Video cassettes = Rs 274.50  126 
 Discount = Rs (300 – 274.50) = Rs 25.50 Hence, the actual cost of the article is Rs
200.
 25.50 
 Rate of discount =  100  = 8.5% Ex. 7: The marked price of a watch is Rs 400.
 300  After allowing a discount of 25% on
Ex. 4: After allowing a discount of 12% on the the marked price, there was a loss of
marked price of an article, it is sold Rs 20. Determine the loss per cent.
for Rs 880. Find its marked price. Soln: Marked price of watch = Rs 400
Soln: Let the marked price be Rs 100. Discount of 25% of the marked price
Discount = 12% on Marked Price
 25 
= 12% of Rs 100 = Rs 12 = Rs  400   = Rs 100
 SP = MP – Discount = Rs (100 – 12 )  100 
= Rs 88 Selling price of the watch
Now, = Rs (400 – 100 =) 300
When SP is Rs 88, MP = Rs 100 Cost price of the watch = Selling price of
the watch + Loss
100
When SP is Re 1 MP = Rs = Rs 300 + Rs 20 = Rs 320
88
When SP is Rs 880, MP  20 
 required loss per cent =  100 
 320 
 100 
= Rs   880  = Rs 1000
 88   25  1
=  6 %
Hence, the marked price of the article is  4  4
Rs 1000.
304 Concept of Arithmetic

Ex. 8: A shopkeeper marks his goods at such SP of the article = MP – Discount

a price that after allowing a discount
 x 7x
of 12.5% for cash payment, he still = Rs  x   = Rs
m akes a pr ofi t of 10%. Fi nd t he  8 8
marked price of an article which costs
 7x 
him Rs 245. Profit = SP – CP = Rs   245 
Soln: We have,  8 
CP of the article = Rs 245
Gain = 10%   7x  
  8  245  
 
100  Gain %
 CP Profit % =  245
 100 
 SP =  
100  
 100  10  Now, according to the question,
= Rs   245 
 100 
  7x  
 110    8  245  
 245  = Rs 269.50  
= Rs    100  = 10
 100   245 
Now, let the marked price be Rs 100.  
Then, discount allowed
= 12.5% of MP = Rs 12.5 70x
or,  2450 = 245
 SP of the article = MP – Discount 8
= Rs 100 – 12.5 = Rs 87.5
Thus,  (2450  245 )  8 
When SP is Rs 87.5, MP = Rs 100 or, x = Rs  
 70 
100
When SP is Re 1, MP = Rs  2695  8   21560 
87.5 = Rs   = Rs  
 70   70 
When SP is Rs 269.50, MP
= Rs 308

K KUNDAN
 100  Hence, the marked price of the article is
= Rs   269 .50  = Rs 308
 87 .5  Rs 308.
Ex. 9: A cycl e m erchant al lows 25%
Hence, marked price of the article is Rs
commission on his advertised price and
308.
still makes a profit of 20%. If he gains
Alternative Method I:
Rs 60 over the sale of one cycle, find
Let the Marked Price (MP) be Rs 100.
his advertised price.
Then, Discount = 12.5
Soln: Let the advertised price be Rs 100.
 SP = Rs (100 – 12.5) = Rs 87.5
Commission on advertised price = 25%
 SP  100   8.75  100  = Rs 25
 CP =  100  Profit %  = Rs  100  10   SP = Advertised price – Commission
   
= Rs 100 – Rs 25 = Rs 75
 875  We have, profit = 20%
= Rs  
 11  100
 CP =  SP
875 100  Gain%
 If CP is , then marked price is Rs
11
 100 
100. = Rs   75 
 100  20 
 If CP is Rs 245, then marked price is
 100  11  245   100 
=   75  = Rs 62.5
Rs   = Rs 308
 120 
 875 
Hence, the marked price of the article is  Gain = SP – CP = Rs 75 – 62.5
Rs 308. = Rs 12.5
Alternative Method II: Now,
Let the Marked Price of the article be Rs If the gain is Rs 12.5, advertised price
x, we have, = Rs 100
CP of the article = Rs 245 If the gain is Re 1, advertised price

 12 .5  x 100
Discount = Rs   x  = Rs = Rs
 100  8 12 .5
Discount 305

If the gain is Rs 60, advertised price

 100  10 
100 Soln: Selling price = 480   = Rs 432
 60 = Rs 480  100 
= Rs
12.5
Hence, advertised price of the cycle is Rs  100 
Cost price = 432   = Rs 400
480.  100  8 
Ex. 10: A cycl e m erchant al lows 25% If there is no discount, SP = Rs 480
commission on his advertised price and
480  400
still makes a profit of 20%. If he gains  % profit =  100 = 20%
Rs 60 over the sale of the one cycle, 400
find his cost price. Ex. 13: A deal er bought a hor se at 20%
Soln: Let the advertised price be Rs 100. discount on its original price. He sold
Commission on advertised price = 25% it at a 40% increase on the original
= Rs 25 price. What percentage of profit did he
 SP = Advertised price – Commission get?
= Rs 100 – Rs 25 = Rs 75 Soln: Let the original CP = Rs 100
We have, profit = 20% Dealer’s CP = 100 – 20% of 100 = Rs 80
Dealer’s SP = 100 + 40% of 100 = Rs 140
100
 CP =  SP
100  Gain% 140  80
Dealer’s profit % = = 75%
80
 100 
= Rs   75  Ex. 14: If a discount of 10% is given on the
 100  20  m arked pr i ce of an ar t i cl e, t he
shopkeeper gets a profit of 20%. Find
 100 
= Rs   75  = Rs 62.5 hi s per cent profi t i f he offers a
 120  discount of 20% on the same article.
 Profit = SP – CP Soln: Suppose the marked price = Rs 100
= Rs 75 – Rs 62.5 = Rs 12.5 Then selling price at 10% discount
Now, = Rs (100 – 10) = Rs 90

K KUNDAN
 If the gain is Rs 12.5, then CP is Rs Since he gets 20% profit, his cost price
62. 5.
 100 
 If the gain is Rs 60, then CP is Rs = 90   = Rs 75
 120 
 62.5  Now, at 20% discount, the selling price
  60  = Rs 300.
 12.5  = Rs (100 – 20) = Rs 80
Ex. 11: Sat ish marks his goods 25% abov e Thus his % profit
cost price but allows 12.5% discount 80  75 500 20 2
for cash payment. If he sells the article =  100   6 %
for Rs 875, find his cost price. 75 75 3 3
Soln: Let the cost price of goods be Rs 100. Ex. 15: An article is marked at a price which
 Marked price = Rs (100 + 25) = Rs 125 gives a profit of 25%. After allowing a
 Selling price = Rs (125 –12.5% of 125) certain discount, the profit reduces to

 125  1
= Rs 125   125  12 %. Find the discount per cent.
 1000  2
Soln: Let the CP of an article be Rs 100. Then,
 125  875 to attain a profit of 25% , marked price
= Rs 125   = Rs
 8  8 must be 25% more than the cost price.
 marked price = Rs 100 + Rs 25
875 = Rs 125
 If the selling price is Rs 8
, then
After allowing a certain discount the profit
cost price = Rs 100 1
 If the selling price is Rs 875, then cost reduces to 12 %.
2
 8  100  875  1
price = Rs   = Rs 800
Therefore, Profit = 12 % of CP
 875  2
Ex. 12: The marked price of a radio is Rs 480.
1 1
The shopkeeper allows a discount of = 12 % of Rs 100 = Rs 12
10% and gains 8%. If no discount is 2 2
allowed, find his gain per cent.
306 Concept of Arithmetic

1  200 
 SP = CP + Profit = Rs 100 + 12  
2 7 100  = 40%
 increase per cent = 
 500 
1  
= Rs 112  7 
2
Ex. 17: If a shopkeeper marks the price of goods
Now, MP = SP + Discount
50% more than their cost price and
 Discount = MP – SP
allows a discount of 40%, what is his
1 1 gain or loss per cent?
= Rs 125 – Rs 112 = Rs 12 Soln: Let the cost price be Rs x.
2 2
 Marked price = Rs (x + 50% of x)
 Discount 
 Discount % =  100   50x  3x
 MP  = Rs  x   = Rs
 100  2
 1  Discount = 40% of the marked price
 12 
=  2 100  = 10 3x
 125  = 40% of Rs
  2
 
 3x 40  3x
Hence, discount = 10% =    = Rs
Ex. 16: A tradesman allows a discount of 15%  2 100  5
on the written price. How much above Selling Price = Marked Price – Discount
the cost price must he mark his goods
 3x 3x  9x
to make a profit of 19%? =    = Rs
Soln: Let the CP be Rs 100  2 5  10
We have, Gain = 19% of CP = Rs 19 Since Selling Price < Cost Price, there is
 SP = CP + Gain = Rs 100 + Rs 19 a loss and it is given by
= Rs 119 9x 
 x
The trader allows a discount of 15%. This Loss = CP – SP = Rs  x   = Rs

K KUNDAN
 10  10
means that when marked price is Rs 100,
then SP is Rs 85.
Now,  x 
 
If Rs 85 is the SP, then marked price  Loss % =  10 100  = 10%
= Rs 100  x 
 
If Re 1 is the SP, then marked price  
100 Hence, there is a loss of 10% .
= Rs
85 Ex. 18: A shopkeeper offers 5% discount on all
If Rs 119 is the SP, then his goods t o al l hi s cust om er s. He
offers a further discount of 2% on the
 100 
Marked Price = Rs  119  = Rs 140 reduced price to those customers who
 85  pay cash. What will you actually have
Hence, the trader must mark his goods to pay for an article in cash if its MP
40% above the cost price. (Marked Price) is Rs 4800?
Alternative Method: Soln: We have, MP of the article = Rs 4800
Let the marked price be Rs 100. First discount = 5% of MP
Discount = 15% = 5% of Rs 4800
 Selling Price = Rs 100 – Rs 15 = Rs 85
Profit = 19%  5 
= Rs   4800 
 100 
 100 
 Cost Price =   SP  = Rs 240
 100  Profit %  Net price after discount
= Rs 4800 – Rs 240 = Rs 4560
 100  500 Second discount = 2% of Rs 4560
=   85  = Rs
 119  7
 2 
Increase in marked price with respect to = Rs   4560 
cost price  100 
= Rs 91.20
500 200 Net price after discount
= Rs 100 – Rs = Rs
7 7 = Rs 4560 – Rs 91.20 = Rs 4468.80
Discount 307

Alternative Method: ( By Rule of Soln: Marked price of the scooter = Rs 18000

Fraction) First discount = 10% of Rs 18000
Marked Price = Rs 4800
 10 
First discount = 5% = Rs  18000 
Second discount = 2%  100 
Net selling price of the goods is the actual = Rs 1800
price you have to pay Net price after first discount
 Selling Price = Rs 18000 – Rs 1800 = Rs 16200
Second discount = 5% of Rs 16200
 100  First discount 
= Marked Price  
 5 
 100  16200 
= Rs 
 100 
 100  Second discount 
  = Rs 810
 100  Net price after second discount
= Rs 16200 – Rs 810 = Rs 15390
  100  5   100  2   Third discount = 2% of Rs 15390
= Rs 4800    
  100   100  
 2 
= Rs  15390 
 4800  95  98   100 
= Rs  
 100  100  = Rs 307.80
= Rs 4468.80 Net price after third discount
Ex. 19: Find the single discount equivalent to = Rs (15390 – 307.80) = Rs 15082.20
successive discounts of 15% and 20%. Hence, net selling price is Rs 15082.20
Soln: Let the marked price be Rs 100. Alternative Method: (By Rule of Fraction)
Then, first discount = 15% of Rs 100 Net selling price
= Rs 15  100  10   100  5 
Net price after first discount = Rs 18000   
= Rs 100 – Rs 15 = Rs 85  100   100 
Second discount = 20% of Rs 85

K KUNDAN
 100  2 
 20   
= Rs   85   100 
 100 
= Rs 17 90 95 98
= Rs 18000   
Net price after second discount 100 100 100
= Rs 85 – Rs 17 = Rs 68
Total discount = Rs (15 + 17) = Rs 32 18  9  95  98
= Rs
Hence, the equivalent single discount 100
= Rs 32 on MP of Rs 100 = 32% = Rs 15082.20
Alternative Method: ( By Rule of Ex. 21: Two successive discounts of 20% and
Fraction) 5% are allowed on an article whose
Let the marked price be 100 net selling price is Rs 380. Find its
First discount = 15% and marked price.
Second discount = 20% Soln: Let the marked price be Rs 100.
Net selling price of the goods is the actual Then, first discount = 20% of Rs 100
price you have to pay = Rs 20
 Selling Price Net price after first discount
= Rs (100 – 20) = Rs 80
  100  15   100  20   Second discount = 5% of Rs 80
= Rs 100    
  100   100  
 5 
= Rs   80 
100  85  80   100 
= Rs   = Rs 68
 100  100  = Rs 4
 Equivalent discount Net price after second discount
= Marked Price – Selling Price = Rs (80 – 4) = Rs 76
= 100 – 68 = 32% Thus, net selling price after two discounts
Ex. 20: An ol d scoot er i s sol d at t hr ee = Rs 76
successive discounts of 10%, 5% and Now,
2%. If the marked price of the scooter If SP of Rs 76, MP = Rs 100
is Rs 18000, find its net selling price.
308 Concept of Arithmetic

100 Ex. 23: A dealer buys an article listed at Rs

If SP is Re 1, MP = Rs 100 and gets successive discounts of
76
10% and 20%. He spends 10% of the
 100  cost price on transportation etc. At
If SP is Rs 380, MP = Rs   380 
 76  what price should he sell the article to
= Rs 500 earn a profit of 15%?
Hence, marked price = Rs 500. Soln: List price of the article = Rs 100
Alternative Method: (By Rule of Fraction) First discount = 10% of Rs 100 = Rs 10
Selling Price = Rs 380 Net price after first discount
Let the marked price be Rs x. = Rs (100 – 10) = Rs 90
Now, according to the question, Second discount = 20% of Rs 90

 100  20   100  5   20 
= Rs   90  = Rs 18
380 = x     100 
 100   100 
Net price after second discount
80 95 = Rs (90 – 18) = Rs 72
or, 380 = x  
100 100 Transportation cost = 10% of Rs 72

380  100  100  10 

 x = = Rs 500 = Rs   72 
80  95  100 
Ex. 22: The list price of a watch is Rs 160. = Rs 7.20
After two successive discounts, it is  CP of the article = Rs (72 + 7.20)
sold for Rs 122.40. If the first discount = Rs 79.20
i s 10%, what i s the rat e of second Profit = 15%
discount? 100  Profit %
Soln: List price of watch = Rs 160.  SP =  CP
First discount = 10% of Rs 160 100

 10   100  15 
160  = Rs   79 .20  = Rs 91.08
= Rs 

K KUNDAN
 100   100 
= Rs 16 Ex. 24: An invoice for a machinery plant is
 Net price after first discount stated as follows: Cost of machinery
= Rs (160 – 16) = Rs 144 plant = Rs 18575.
SP of watch = Rs 122.40 2 1 n
Second discount = Rs (144 – 122.40) Terms: Cash 3, , , . Find
10 20 30
= Rs 21.60
Since second discount is on Rs 144 ie the discount if,
price after first discount. (i) the bill is paid immediately.
 Rate of second discount (ii) the bill is paid on the 9th day.
(iii) the bill is paid on the 17th day.
 21.60  (iv) the bill is paid on the 28th day.
=   100 % = 15%
 144  Soln: Cost of the plant = Rs 18575
Alternative Method: (By Rule of Fraction) (i) As the bill is paid immediately, cash
List price = Rs 160, discount of 3% is allowed.
The first discount = 10% and  18575  3 
the selling price = Rs 122.40  discount = Rs  
 100 
Let the rate of second discount be x% .
Now, according to the question, = Rs 557.25
(ii) As the payment is made of 9th day,
 100  10   100  x  2% discount is allowed.
122.40 = 160     
 100   100 
 18575  2 
 discount = Rs  
90 (100  x )  100 
or, 122.40 = 160  
100 100 = Rs 371.50
(iii) When the payment is made on 17th
12240  100 day, 1% discount is allowed.
or, 100 – x = = 85
160  90
 18575  1 
 x = 100 – 85 = 15%  discount = Rs  
Hence, the second discount is 15% .  100 
= Rs 185.75
Discount 309

(iv) In case the payment is made after 20 Hence, the basic price of the TV set is Rs
days, no discount is given. 12300.
 When the payment is made on the Ex. 27: Sam i r bought a shir t for Rs 336,
28th day, there is no discount. including 12% sales tax and a necktie
Ex. 25: George bought a VCR at the list price for Rs 110 including 10% sales tax.
of Rs 18500. If the rate of sales tax Find the printed price (without sales
was 8%, find the amount he had to tax) of shirt and necktie together.
pay for purchasing the VCR. Soln: Let the printed price of the shirt be Rs x
Soln: List price of VCR = Rs 18500 and that of necktie be Rs y. Then,
Rate of sales tax = 8% Sales tax on shirt = 12% of Rs x
 Sales tax = 8% of Rs 18500
12x 3x
8 = Rs = Rs
 18500 = Rs 1480 100 25
=
100 Sales tax on necktie = 10% of Rs y
So, total amount which George had to pay
10y y
for purchasing the VCR = Rs = Rs
= Rs 18500 + Rs 1480 = Rs 19980 100 10
Ex. 26: The price of a TV set inclusive of sales  Selling price of shirt
tax is Rs 13530. If the rate of sales 3x 
 28x
tax is 10%, find its basic price. = Rs  x   = Rs and,
Soln: Let the basic price of TV set be Rs x.  25  25
Th en , Selling price of necktie
Sales tax at the rate of 10% on Rs x y 
 11y
= Rs  y   = Rs
 10   x   10  10
= Rs   x  = Rs  
 100   10  But selling prices of shirt and necktie are
Thus, the sale price of the TV set Rs 336 and Rs 110 respectively.

 x  11x 28x 11y

= Rs  x   = Rs  = 336 and = 110

K KUNDAN
 10  10 25 10
It is given that the sale price of the TV set 336  25 110  10
is Rs 13530. or, x = and y =
28 11
11x
 = 13530 or, x = 300 and y = 100
10 Hence, the total printed price of the shirt
13530  10 and necktie
or, x = = 12300 = Rs (300 + 100) = Rs 400
11

Practice Exercise

1. List price of a Video cassette is Rs 100. A
dealer sells three Video cassettes for Rs 274.50
after allowing discount at certain rate. Find
the rate of discount allowed.
2. A shopkeeper marks his goods 20% above his
cost price. He gives 15% discount on the
marked price. Find his gain per cent.
3. A shopkeeper allows a discount of 10% on
the marked price of an item but charges a
sales tax of 8% on the discounted price. If a
customer pays Rs 680.40 as the price of the
item including sales tax, find the marked
price of the item.
4. A shopkeeper marks his goods at such a price
1
that after allowing a discount of 12 % on
2 on the marked price. Find his gain per cent
the marked price, he earns a profit of 20% .
Find the marked price of the article which
costs him Rs 1400.
5. A trader marks his goods at 25% above the
cost price. If he allows a discount of 8% for
cash payment, what profit per cent does he
make?
6. A dealer marks his goods 20% above the cost
price. He then allows some discount on it
and earns a profit of 14%. What is the rate of
discount offered by the dealer?
7. On selling an article at a discount of 20% ,
the profit is 20% . Find the profit per cent if
the article is sold at a discount of 10%.
8. By selling an umbrella f or Rs 300, a
shopkeeper gains 20% . During a clearance
sale, the shopkeeper allows a discount of 10%
during the sale season.
310
9. How much per cent above the cost price must
a person mark his goods so that even after
giving a discount of 10% , a profit of 10% is
made?
10. A trader bought some goods at a discount of
20% of the list price. He wants to mark them
at such a price that he can give a discount of
20% on the marked price and still make a
profit of 25% . Find the per cent of the list
price at which he should mark the goods.
11. In a shop, the prices of all goods are marked
15% above the cost price and 5% discount is
allowed on all sales. In a certain month, the
business expenses of the shop amounted to
Rs 6,500 and the owner realised a profit of
6%. Find the cost prices of goods sold by the
shop during the month.
12. A company gives discount to its customers at
15% on the list price and thus makes a profit
of 19% . If the cost of production goes up by
12% , company issues a new price list in
which cost of all goods have been increased
by 10%. If company continue to give discount
of 15% on t he list pr ice, f ind the pr ofit
percentage.
13. Which is the profitable bargain for a consumer
(i) The successive discount s of 20% and
15% .
(ii) The successive discount s of 10% and
K KUNDAN
25% .
14. Two dealers offer an article at the same list
price. The first allows discount 20% , 10%
and 5% , the other of 15% , 12% and 8% .
Which is a better offer for the customer?
15. The marked price of an article is Rs 800. A
retailer purchases it after two successive
discounts for Rs 540. The first discount of it
was 25%. Find the rate of second discount.
16. By how much above the cost should the goods
be marked for sale, so that after allowing a
trade discount of 20% and a cash discount of
6.25%, a net gain of 20% on the cost is made?
17. A dealer buys a table listed at Rs 1500 and
gets successive discounts of 20% and 10% .
He spends Rs 20 on transportation and sells
it at a profit of 10%. Find the selling price of
the table.
18. A manufacturer marks his goods at 40% above
the cost price. He allows a discount of 10%
for the cash customers and 5% to the credit
3
customers. th of the goods are sold for cash
5 remaining goods at 50% of the marked price.
and rest on credit. What is the percentage of
Concept of Arithmetic
profit when all the goods are sold and the
amount realised?
19. Reena goes to a shop to buy a radio, costing
Rs 2568. The rate of sales tax is 7% . She
tells the shopkeeper to reduce the price of
the radio to such an extent that she has to
pay Rs 2568, inclusive of sales tax. Find the
reduction needed in the price of the radio.
20. David purchased a pair of shoes for Rs 441
including sales tax. If the sales price of the
shoes is Rs 420, find the rate of sales tax.
21. Amit purchases a motorcycle, having marked
price Rs 46000 at a discount of 5%. If sales
tax is charged at the rate of 10% , find the
amount Amit has paid to pur chase the
motorcycle.
22. The list price of an air-conditioner is Rs
25630. The rate of sales tax is 10% . The
cust omer r equest s the dealer t o allow a
discount to such an extent that the cost of
the air-conditioner amount s to Rs 25630
inclusiv e of sales t ax. Find the rat e of
discount.
23. Shilpa buys a washing machine quoted at Rs
4 2 n
16800 on the terms of cash 5, , , .
10 20 30
Find the amount she will have to pay if the
payment is made on the 7th day.
24. A shopkeeper fixed selling price of his goods
at 20% above cost price. He sells half the
stock at this price, one quarter of the stock at
the discount of 15% and the remaining at
the discount of 50% on the marked selling
price. What is his gain or loss per cent?
25. A sells an item at Rs 100 less than the list
price and receives 10% of his selling price
as commission. B sells the same item at Rs
200 less than the list price and receives 20%
of his selling price as his commission. If they
both get the same commission. What is the
list price of the item?
26. Two retailers A and B purchase one computer
each from a wholesaler at the r ate of Rs
40000. First retailer A sells the computer at a
profit of 20% while t he second ret ailer B
enhances t he rat e by 30% and sells the
computer at 8% rebate. Find the profit of each
A and B.
27. A shopkeeper marks his goods at 20% above
his cost price. He sells three-fourth of his
goods at t he mar ked pr ice. He sells t he
Determine his profit per cent on the whole
transaction.
Discount 311

Answers and explanations

1. We have, 5. Let the cost price be Rs x.
List price of one Video cassette = Rs 100 Marked price = Rs (x + 25% of x)
 List price of three Video cassettes = Rs 300
 25x  5x
SP of three Video cassettes = Rs 274.50 = Rs  x   = Rs
 Discount = Rs (300 – 274.50) = Rs 25.50  100  4
Discount = 8% of the marked price
 25.50 
 Rate of discount =  100  = 8.5%
 300   5x 8  x
= Rs    = Rs
2. Let the cost price be Rs 100.  4 100  10
100  120  Selling Price = Marked Price – Discount
 Marked Price = Rs = Rs 120
100  5x x   25 x  2x 
Rate of discount = 15% = Rs    = Rs  
 4 10   20 
120  85
 Selling Price = Rs = Rs 102 23x
100 = Rs
20
 Gain % = Rs 102 – Rs 100 = 2%
3. Let the marked price of the item be Rs 100.  23 x  3x
Discount = 10%  Gain = SP – CP = Rs   x  = Rs
 20  20
 Discounted price for the shopkeeper
= Rs (100 – 10) = Rs 90
Sales tax = 8% of the discounted price  3x 
 
= 8% of Rs 90 Gain % =  20 100  = 15%
 x 
 8   
 90  = Rs 7.20  
= Rs 
 100 
Alternative Method:
 Selling price for the shopkeeper

K KUNDAN
Let the CP of the article be Rs 100.
= Rs 90 + Rs 7.20 = Rs Rs 97.20  Marked price of the article = Rs 125
Now, The trader allows a discount of 8% .
 If selling price is Rs 97.20, then marked  SP = (100 – 8)% of Rs 125
price is Rs 100.
 If selling price is Rs 680.40, then marked 125  92
= Rs = Rs 115
100
 680 .40  100 
price is Rs   = Rs 700. Since the CP of the article is Rs 100, hence
 97 .20  the profit per cent = (115 – 100 =) 15%
 Marked Price = Rs 700. 6. Let the cost price be Rs x.
4. We have, CP of the article = Rs 1400  Marked price = Rs (x + 20% of x)
Gain = 20%
 20x  6x
 100  Gain%  = Rs  x   = Rs
  CP  100  5
 SP = 
 100  Gain % = 14%
 100  20 
= Rs   1400   100  Gain% 
 100  Selling Price =   CP 
 100 
 120  1400 
= Rs   = Rs 1680  100  14  57x
 100  = Rs   x  = Rs
 100  50
Now, let the marked price be Rs 100.
Then, discount allowed = 12.5% of MP Discount = Marked Price – Selling Price
= Rs 12.5  6x 57 x  3x
 SP of the article = MP – Discount = Rs    = Rs
 5 50  50
= Rs (100 – 12.5) = Rs 87.5
Thus, 3x
 When SP is Rs 87.5, MP = Rs 100
50  100  3x  5  100
Rate of discount =
 100  6x 50 6x
 When SP is Rs 1680, MP = Rs  1680 
 87.5  5
= Rs 1920 = 5%
312 Concept of Arithmetic

7. Suppose the marked price = Rs 100 He wants to make a profit of 25% on this cost
Then selling price at 20% discount price.
= Rs (100 – 20) = Rs 80
 25  80 
Since he gets 20% profit, his cost price  Selling price = Rs  80  
 100 
 100   80  5  200
= Rs 80   = Rs   = Rs = Rs (80 + 20) = Rs 100
 100  20   6  3 This becomes final selling price of the goods
Now, at 10% discount, the selling price after discount of 20% .
= Rs (100 – 10) = Rs 90 Now, let the marked price of goods be Rs x.
Profit = Selling Price – Cost Price Now, according to the question,
 200  70 20  x
= Rs  90   = Rs x  100
 3  3 100
Thus, his per cent profit
100 x  20 x
or,  100
70 100
3  100  70  3  100 or, 80x  10000
= = 35%
200 3 200
3 10000
or, x =  125
8. Selling price of the umbrella = Rs 300 80
Gain% = 20%  The marked price of the goods should be
Rs 125.
 100  Hence the trader should mark the price of
Cost price = Rs 300    = Rs 250
 100  20  the goods (125 – 100 =) 25% above the list
Here, marked price is the selling price price.
= Rs 300. 11. Let the cost price of the goods sold during
 New selling price (during the sale season) the month be Rs 100x.
Marked price, 15% above the cost price
 100  10  = Rs 115x
= Rs 300    = Rs 270

K KUNDAN
 100  Sales price after 5% discount on marked price
 Gain = Selling Price – Cost Price
95  115 x
= Rs (270 – 250) = Rs 20 
100
20 Expenses during the month = Rs 6500
 Gain % =  100 = 8%
250 Owners’ profit = 6%
9. Let the CP be Rs 100. So, according to the question,
We have, Gain = 10% of CP = Rs 10 95  115x
SP = CP + Gain = Rs 100 + Rs 10 = Rs 110  6500  106x
The person allows a discount of 10% . This 100
means that when marked price is Rs 100, or, 95 × 115x – 106x × 100 = 650000
then SP is Rs 90. or, 10925x – 10600x = 650000
Now, or, 325x = 650000
If Rs 90 is the SP, then marked price is Rs 650000
100. or, x = = Rs 2000
325
If Rs 110 is the SP, then marked price is
But CP is 100x = 100 × 2000 = Rs 200000.
 100  1100 12. Let the marked price be Rs 100
Rs  110  = Rs
 90  9  Selling price = Rs (100 – 15) = Rs 85
Hence, the person must mark his goods 100
Cost price at 19% profit = 85  (100  19)
 1100  200 2
  100    22 % above the cost
 9  9 9
85  100 500
price. = = Rs
119 7
10. Let the list price be Rs 100.
Cost price after 20% discount New cost of production after increase of 12%

 20  500 112
=  = Rs 80
= Rs 100   100 
7 100
 100 
= Rs (100 – 20) = Rs 80 New list price is Rs (100 + 10) = Rs 110
Discount 313

New selling price after discount of 15% Cost price after 8% discount
 100  15  110  85 8  74.80
= 110    = = Rs 93.50 = 74.80  = Rs 68.816
 100  100 100
Profit = Selling Price – Cost of Production It can be seen from the above that the first
= Rs (93.50 – 80) = Rs 13.50 discount series is more favourable.
15. Marked price of an article = Rs 800
13.50
Profit % =  100 = 16.875% First discount = 25% of Rs 800
80
 25 
13. ( i ) Let the list price be Rs 100 = Rs  800   = Rs 200
In first case,  100 
Net price after first discount
20
First discount of 20% = Rs 100  = Rs (800 – 200) = Rs 600
100 SP of article = Rs 540
= Rs 20 Second discount = Rs (600 – 540) = Rs 60
Price after first discount = Rs (100 – 20) Since second discount is on Rs 600 ie price
= Rs 80 after first discount.
Now, second discount of 15%  60 
 Rate of second discount =   100 %
 15  80   600 
= Rs   = Rs 12 = 10%
 100 
16. Let the marked price be Rs 100
Net price = Rs (80 – 12) = Rs 68 Price after discount of 20%
( i i) First discount 10%
 20  100 
10 = Rs 100   = Rs 80
= Rs 100  = Rs 10  100 
100
Price after discount of 6.25%
Price after first discount = Rs (100 – 10)
= Rs 90  6.25  80 
Now, = Rs  80   = Rs 75
 100 

K KUNDAN
Second discount of 25% =
25  90
100
= Rs 22.50
Net price = Rs 90 – 22.50 = Rs 67.50
This way it can be seen that the second
offer is more beneficial to the consumer.
14. Let the marked price be Rs 100
First discount series 20%, 10% and 5%
 Single equivalent discount

 SP = Rs 
= (100 – 75) = 25%
Again, let the CP be Rs 100.
We have gain % = 20%
 100  20 
 100 
  100 = Rs 120

Now a discount of 25% is allowed. This means

that when marked price is Rs 100, then SP
Cost price after 20% discount
is Rs (100 – 25) = Rs 75
20  100 Now,
= 100  = Rs 80
100  If Rs 75 is the SP, then maked price is
Cost price after 10% discount Rs 100.
 If Rs 120 is the SP, then maked price is
10  80
= 80  = Rs 72  100 
100 Rs  120  = Rs 160
 75 
Cost price after 5% discount
Hence marked price will be (160 – 100) = 60%
5  72 more than the cost price.
= 72  = Rs 68.40
100 17. Marked Price = Rs 1500
Second discount series 15%, 12% and 8% Successive discounts = 20% and 10%
Cost price after 15% discount After 20% discount,
Price = 80% of Rs 1500
15  100
= 100  = Rs 85  80 
100 = Rs  1500  = Rs 1200
Cost price after 12% discount  100 
After 10% discount,
12  85 Price = 90% of Rs 1200
= 85  = Rs 74.80
100
 90 
= Rs  1200  = Rs 1080
 100 
314 Concept of Arithmetic

Transportation cost = Rs 20  Selling price of the radio

 Effective cost price = Rs 1080 + Rs 20
 7x  107x
= Rs 1100 = Rs  x   = Rs
Profit = 10%  100  100
But the selling price of the set is Rs 2568.
 100  Profit% 
 Selling Price =    Cost Price 107x
 100   = 2568
100
 100  10 
= Rs   1100  2568  100
 100  or, x = = Rs 2400.
107
 110  Hence, the reduction needed in the price of
= Rs  1100  = Rs 1210
 100  the radio = Rs (2568 – 2400) = Rs 168
18. Let the cost price for manufacturer be Rs 100 2 0 . Let the rate of sales tax be x%. Then
Marked price of the goods Sales tax = x% of Rs 420

40  100  x  21x
= Rs   420  = Rs
= 100  = Rs (100 + 40) = Rs 140  100  5
100
According to the question,  21x 
 Selling price of shoes = Rs  420  
3  5 
He sells th of his goods on cash at 10% But selling price of shoes is Rs 441.
5
discount 21x
 420  = 441
5
3
 Marked price of th goods
5 21x
or, = 21
5
3
=  140 = Rs 84  x = 5
5
Hence, the rate of sales tax is 5%.

K KUNDAN
10% discount = Rs 8.40 21. Marked price of motorcycle = Rs 46000
3 Discount = 5% of Rs 46000
Selling price of th goods  5 
5  46000  = Rs 2300
= Rs 
= Rs 84 – Rs 8.40 = Rs 75.60  100 
 Net price of motorcycle
2 = Rs 46000 – Rs 2300 = Rs 43700
He sells th of the goods on credit at 5%
5 Sales tax = 10% of Rs 43700
discount.  10 
= Rs   43700  = Rs 4370
2  100 
So, marked price of th goods  SP of motorcycle = Rs (43700 + 4370)
5
= Rs 48070
2 Hence, Amit has paid Rs 48070 to purchase
=  140 = Rs 56 the motorcycle.
5
2 2 . The list price of air-conditioner = Rs 25630
5 Rate of sales tax = 10%
5% discount = 56  = Rs 2.80 Selling price of air-conditioner with sales tax
100
25630  110
2 = Rs = Rs 28193
Selling price of th goods 100
5
Let the rate of discount given = x%
= Rs (56 – 2.80) = Rs 53.20
According to the question,
Selling price of goods under both category
= Rs (75.60 + 53.20) = Rs 128.80 28193  x
28193 – = 25630
Profit = Selling price – Cost price 100
= Rs (128.80 – 100) = Rs 28.80 or, 2819300 – 28193x = 100 × 25630
Profit = 28.80%
19. Let the reduced price, excluding the sales 2819300  2563000 100 1
or, x =  9
tax, of the radio be Rs x. Then, 28193 11 11
7x 1
Sales tax = 7% of Rs x = Rs Hence, the rate of discount = 9 %
100 11
Discount 315

23. Cost price of washing machine = Rs 16800.

 20 
As the payment is made on the 7th day, cash B’s commission = Rs   ( x  200 )
discount of 4% is allowed. 100 

 16800  4   x  200 
 Discount = Rs   = Rs 672 = Rs  
 100   5 
 Required amount paid by her Now, according to the question,
= Rs (16800 – 6782) = Rs 16128
x  100 x  200
24. Let the shopkeeper sell 100 articles of cost 
price Rs 100 each. 10 5
The shopkeeper fixes the marked price at 12% or, 10x – 2000 = 5x – 500
above the CP. or, 10x – 5x = 2000 – 500
 Marked price of each article or, 5x = 1500
= Rs (100 + 20) = Rs 120
1500
He sells half the stock at marked price.  x = = 300
 SP of 50 articles = Rs (120 × 50) = Rs 6000 5
Total marked price of 25 articles Hence, the marked price of the article
= Rs (25 × 120) = Rs 3000 = Rs 300
26. Cost price of first retailer A = Rs 40000
 15  He sells it at a profit of 20%.
Discount (at 15%) = Rs  3000   = Rs 450
 100 
20
 Selling price = Rs (3000 – 450) = Rs 2550  His profit = 40000  = Rs 8000
100
Remaining 25 ar t icles ar e sold at 30%
discount. CP of second retailer ie B = Rs 40000
 Marked price (total) = Rs 3000 He marks it at 30% profit.

 30  100  30
 Discount = Rs  3000   = Rs 900  His marked price = 40000 
 100  100
SP = Rs (3000 – 900) = Rs 2100 = 400 × 130 = Rs 52000

K KUNDAN
Hence, total SP = Rs (6000 + 2550 + 2100) B’s SP after giving 8% rebate becomes
= Rs 10650 (100  8)
Total CP = Rs (100 × 100) = Rs 10000 = Rs 52000 
100
Profit = Rs (10650 – 10000) = Rs 650
= Rs (520 × 92) = Rs 47840
650  100  B’s profit = Rs (47840 – 40000) = Rs 7840
 Gain % = = 6.5% 27. Let the shopkeeper have 100 articles and the
10000
25. Let the marked price of article be Rs x. cost of each article be Rs 100.
For salesman A,  Total CP = Rs (100 × 100) = Rs 10000
SP of article = Rs (x – 100) Now, CP of each article be Rs 120.
According to the question,
 10 
A’s commission = Rs   (x  100 ) 3 1 
100  Total SP = Rs   100  120   100  60 
4 4 
 x  100  = Rs (9000 + 1500) = Rs 10500
= Rs  
 Gain = Rs (10500 – 10000) = Rs 500
 10 
For salesman B, 500
SP of article = Rs (x – 200)  Gain % =  100 = 5%
10000