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  1. Home
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Miscellaneous·2020·Easy

A shop owner offers the following discount options on an article to a customer: 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%

A shop owner offers the following discount options on an article to a customer: 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%

Options

  1. a.

    1 only is the best option for the customer.

  2. b.

    2 only is the best option for the customer.

  3. c.

    3 only is the best option for the customer.

  4. d.

    All the options are equally good for the customer.

    Correct answer

Explanation

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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