Question
A trader marks the price of a product at ₹800 and
allows a discount of 15%. If the trader also pays a tax of 5% on the discounted price, what is the total amount paid by the customer?Solution
Discount = 15% of 800 = 0.15 * 800 = ₹120. Selling price after discount = 800 - 120 = ₹680. Tax = 5% of 680 = 0.05 * 680 = ₹34. Total amount paid by the customer = Selling price + Tax = 680 + 34 = ₹714. Correct answer: A) ₹714
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