Chapter-16

Discount
Marked Price
You might have seen while buying goods that on
every article there is a price marked. This price is
known as the marked price. Marked price is also
called list price or printed price. Marked price is
abbreviated as MP.

List Price
Elect rical goods, electr onics and ot her t hings
which are manufactured in a factory are marked
accroding to the price list supplied by the factory,
at which the retailer is supposed to sell them.
This price is known as the list price. For books
etc, the printed price is marked price.

Discount
In order to clear the stocks or to increase sales,
sometimes shopkeepers offer a certain per cent of
rebate on the marked price for cash payments. This
rebate is known as discount.
The customer or buyer pays t he diff er ence
between the marked price and discount. Thus,
Selling Price = Marked Price Discount
It should be noted that discount is given on
the marked price only.

Successive Discounts
When two or more discounts are allowed one after
the ot her , then such discounts are known as
successive discounts.
In successiv e discount s, f ir st discount is
subtracted from the marked price to get net price
after the first discount. Taking this price as the
new mar ked pr ice, t he second discount is
calculated and it is subtracted from it to get net
price after the second discount. Continuing in this
manner, we finally obtain the net selling price.
The following examples will illustrate the above
procedure.
Hyundai Motors offers a series of discounts
20% and 5% and Maruti Suzuki offers a
discount series 5% and 20% . Which of the
two offers is beneficial to the customer?
Let us see how we can calculate the single
discount equivalent to successive discounts.
( i ) Hyundai Motors
Discount series = 20% , 5%

First discount = 20%

Amount of first discount

100 20
= Rs 20
100
Net amount = Rs 100 Rs 20 = Rs 80
Second discount = 5%
Amount of second discount
= Rs

80 5
= Rs 4
100
Price to be paid by the customer
= Rs 80 Rs 4 = Rs 76
( i ) Maruti Suzuki
Discount series = 5% , 20%
First discount = 5%
Amount of first discount
= Rs

100 5
= Rs 5
100
Net amount = Rs 100 Rs 5 = Rs 95
Second discount = 20%
Amount of second discount
= Rs

95 20
= Rs 19
100
Price to be paid by the customer
= Rs 95 Rs 19 = Rs 76
Thus, selling prices of both the companies are
equal. There is no difference in selling price and
the customer may buy goods from any one.
Note: We have seen in the above example that it
makes no difference if we change the order
of the discount series. By cummulative law
of multiplication discount series 30% and
10% is equal to the discount series 10%
and 30% . Similarly series 25% , 15% and
15%, 25% are also equal.
In the abov e example, selling pr ices of
80
95

and
t wo f ir ms are Rs 100
100 100

95
80

are equal.
Rs 100
100 100

= Rs

Cash Discount
When a retailer purchases some goods from a
manufacturer or wholesaler, he gets an invoice.
The meaning of invoice is a list of goods sold or

302
services provided together with the prices charged.
The terms of the payment of the bills are written
on it. If the retailer makes the payment according
to them, then he gets some discount for cash
payment. This discount is called cash discount.

2
1
n
,
,
, ..... ie a
10
20
30
discount of 2% if the payment is made within 10
days, a discount of 1% if the payment is made
between 10th and 20th days and the payment must
be made within 30 days. The buyer thinks whether
he should make the payment early or notas on
one side he gets 2% discount for cash payment
on the other he can have interest on the money
for 1 month.
For example, an invoice is given below, what
will be payment if the payment is made in 2 days?
Quantity
Article
Rate
4 dozen
Pencils
Rs 6 per dozen
3 dozen
Pens
Rs 36 per dozen
4 dozen
Erasers
Rs 12 per dozen
The terms are like this:

3
n
,
10
30
First of all, we will find the amount of the bill
for the goods mentioned in the invoice.
Now, cost of 4 dozen pencils
= Rs 6 4 = Rs 24
cost of 3 dozen pens
= Rs 36 3 = Rs 108
cost of 4 dozen erasers
= Rs 12 4 = Rs 48
Total amount = Rs 24 + Rs 108 + Rs 48 = Rs 180
Accor ding to t he t er ms ment ioned in t he
invoice, 3% discount will be given if the payment
is made withing 10 days.
Discount for payment in 2 days
Terms :

Concept of Arithmetic
included the tax known as Value Added Tax (VAT).
For example, Samir bought the following articles
from a departmental store:

Item

Quantity

Rate per
item (Rs)

Rate of
sales tax

Shirts

200.00

8%

Pair of shoes

350.00

10%

Television
Tea Set

1
1

10900.00
750.00

10%
8%

Calculate the total bill paid, including sales tax,

by Samir to the departmental store.
Here, We have,
CP of 4 shirts = Rs 200 4 = Rs 800
Rate of sales tax = 8%
Sales tax = 8% of Rs 800
8

800 = Rs 64
= Rs
100

So, amount paid for 4 shirts

= Rs (800 + 64) = Rs 864
CP of 2 pairs of shoes = Rs 350 2 = Rs 700
Rate of sales tax = 10%
Sales tax = 10% of Rs 700
10

700 = Rs 70
= Rs
100

So, amount paid for 2 pairs of shoes

= Rs (700 + 70) = Rs 770
CP of television set = Rs 10900
Rate of Sales tax = 10%
Sales tax = 10% of Rs 10900
10

10900 = Rs 1090
= Rs
100

So, amount paid for television set

= Rs (10900 + 1090) = Rs 11990
CP of tea set = Rs 750
Rate of sales tax = 8%
Sales tax = 8% of Rs 750

K KUNDAN
3

= Rs 5.40
= Rs 180
100

Amount of payment = Rs 180 Rs 5.40

= Rs 174.60

Sales Tax and Value Added Tax (VAT)

We know that the government imposes different
types of taxes. Sales tax is one of these taxes. It is
levied at the specified rate on the sale price of the
items and it differs from item to item and state to
state. Sales tax is calculated on selling price
(SP). Thus, if discount is given,first discount is
calculated and then sales tax is calculated on the
selling price of the article. If there is no discount,
then sales tax is calculated on the marked (list)
price of the article. Thus, the sales tax is charged
by the government on the sale of an item. It is
collected by the shopkeeper from the customer and
given to the government. This is, therefore, always
on the selling price of an item and is added to the
value of the bill. These days, however, the prices

750 = Rs 60
= Rs
100

So, amount paid for tea set

= Rs (750 + 60) = Rs 810
Hence, total amount of the bill
= Rs (864 + 770 + 1190 + 810) = Rs 14434
See another example, Waheeda bought an air
cooler for Rs 3300 including a tax (VAT) of 10% .
Find the price of the air cooler before VAT was
added.
The price includes the VAT, ie, the Value Added
Tax. Thus, a 10% VAT means if the price without
VAT is Rs 100 then price including VAT is Rs
110.
Now, when pr ice including VAT is Rs 110,
original price is Rs 100.
Hence, when price including tax is Rs 3300,
100

330 = Rs 3000.
the original price = Rs
110

303

Discount

Solved Examples
Ex. 1:

Soln:

Ex. 2:

Soln:

At a clearance sale, all goods are on

sale at 45% discount. If I buy a skirt
marked Rs 600, how much would I need
to pay?
We have,
MP = Rs 600, Discount = 45%
Discount = 45% of Rs 600

45

600 = Rs 270
= Rs
100

SP = MP Discount
= Rs 600 Rs 270 = Rs 330
Thus, t he amount I need t o pay is
Rs 330.
A fan marked at Rs 540 is offered at
Rs 496.80 due to off season. Find the
rate of discount offered.
Marked price of the fan = Rs 540
Off season price = Rs 496.80
Amount of off season discount
= Rs 540 Rs 496.80 = Rs 43.20

Ex. 5:

Soln:

Ex. 6:

Soln:

120 95
= Rs 114
= Rs
100
Since CP of the goods is Rs 100, hence
the profit per cent = (114 100 =) 14%.
A shopkeeper offers his customers 10%
discount and still makes a profit of
26%. What is the actual cost to him of
an article marked Rs 280?
We have, marked price = Rs 280.
Discount = 10% on marked price
10

280 = Rs 28
= Rs
100

SP = MP Discount = Rs (280 28 )
= Rs 252
Now, SP = Rs 252 and Gain = 26%

43.20
100 = 8%
540
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.
We have,
List price of one Video cassette = Rs 100
List price of three Video cassettes
= Rs 300
SP of three Video cassettes = Rs 274.50
Discount = Rs (300 274.50) = Rs 25.50
Rate of discount =

Ex. 3:

A trader marks his goods at 20% above

the cost price. If he allows a discount
of 5% for cash payment, what profit
per cent does he make?
Let the CP of the article be Rs 100.
Marked price of the article = Rs 120.
The trader allows a discount of 5% .
SP = (100 5)% of Rs 120

K KUNDAN

Soln:

Ex. 4:

Soln:

25.50

100 = 8.5%
Rate of discount =
300

After allowing a discount of 12% on the

marked price of an article, it is sold
for Rs 880. Find its marked price.
Let the marked price be Rs 100.
Discount = 12% on Marked Price
= 12% of Rs 100 = Rs 12
SP = MP Discount = Rs (100 12 )
= Rs 88
Now,
When SP is Rs 88, MP = Rs 100
When SP is Re 1 MP = Rs

100
88

When SP is Rs 880, MP

100

880 = Rs 1000
= Rs
88

Hence, the marked price of the article is

Rs 1000.

CP =

100
SP
100 Gain%

100

252
= Rs
100 26

Ex. 7:

Soln:

100

252 = Rs 200
= Rs
126

Hence, the actual cost of the article is Rs

200.
The marked price of a watch is Rs 400.
After allowing a discount of 25% on
the marked price, there was a loss of
Rs 20. Determine the loss per cent.
Marked price of watch = Rs 400
Discount of 25% of the marked price
25

= Rs 100
= Rs 400
100

Selling price of the watch

= Rs (400 100 =) 300
Cost price of the watch = Selling price of
the watch + Loss
= Rs 300 + Rs 20 = Rs 320
20

100
required loss per cent =
320

1
25
6 %
=
4
4

304
Ex. 8:

Soln:

Concept of Arithmetic
A shopkeeper marks his goods at such
a price that after allowing a discount
of 12.5% for cash payment, he still
m akes a pr ofi t of 10%. Fi nd t he
marked price of an article which costs
him Rs 245.
We have,
CP of the article = Rs 245
Gain = 10%
SP =

SP of the article = MP Discount

x
7x

= Rs x = Rs
8

8
7x

245
Profit = SP CP = Rs
8

7x

8 245

100
Profit % =
245

100 Gain %
CP
100

100 10

245
= Rs
100

Now, according to the question,

7x

8 245

100 = 10
245

110

245 = Rs 269.50
= Rs
100

Now, let the marked price be Rs 100.

Then, discount allowed
= 12.5% of MP = Rs 12.5
SP of the article = MP Discount
= Rs 100 12.5 = Rs 87.5
Thus,
When SP is Rs 87.5, MP = Rs 100
When SP is Re 1, MP = Rs

or,

70x
2450 = 245
8

(2450 245 ) 8
or, x = Rs

70

100
87.5

When SP is Rs 269.50, MP

2695 8
21560
= Rs

= Rs
70

70
= Rs 308
Hence, the marked price of the article is
Rs 308.
A
cycl e m erchant
al lows 25%
commission on his advertised price and
still makes a profit of 20%. If he gains
Rs 60 over the sale of one cycle, find
his advertised price.
Let the advertised price be Rs 100.
Commission on advertised price = 25%
= Rs 25
SP = Advertised price Commission
= Rs 100 Rs 25 = Rs 75
We have, profit = 20%

K KUNDAN
100

269 .50 = Rs 308

= Rs
87 .5

Hence, marked price of the article is Rs

308.
Alternative Method I:
Let the Marked Price (MP) be Rs 100.
Then, Discount = 12.5
SP = Rs (100 12.5) = Rs 87.5
SP 100
8.75 100
CP = 100 Profit % = Rs 100 10

875

= Rs
11

875
, then marked price is Rs
If CP is
11
100.
If CP is Rs 245, then marked price is
100 11 245
= Rs 308
Rs
875

Hence, the marked price of the article is

Rs 308.
Alternative Method II:
Let the Marked Price of the article be Rs
x, we have,
CP of the article = Rs 245

x
12 .5

x = Rs
Discount = Rs
100

Ex. 9:

Soln:

CP =

100
SP
100 Gain%

100

75
= Rs
100 20

100

75 = Rs 62.5
=
120

Gain = SP CP = Rs 75 62.5
= Rs 12.5
Now,
If the gain is Rs 12.5, advertised price
= Rs 100
If the gain is Re 1, advertised price
= Rs

100
12 .5

305

Discount
If the gain is Rs 60, advertised price

100
60 = Rs 480
= Rs
12.5
Hence, advertised price of the cycle is Rs
480.
Ex. 10: A
cycl e m erchant
al lows 25%
commission on his advertised price and
still makes a profit of 20%. If he gains
Rs 60 over the sale of the one cycle,
find his cost price.
Soln:
Let the advertised price be Rs 100.
Commission on advertised price = 25%
= Rs 25
SP = Advertised price Commission
= Rs 100 Rs 25 = Rs 75
We have, profit = 20%
CP =

100
SP
100 Gain%

Soln:

100 10
= Rs 432
Selling price = 480
100
100
= Rs 400
Cost price = 432
100 8
If there is no discount, SP = Rs 480

480 400
100 = 20%
400
Ex. 13: A deal er bought a hor se at 20%
discount on its original price. He sold
it at a 40% increase on the original
price. What percentage of profit did he
get?
Soln:
Let the original CP = Rs 100
Dealers CP = 100 20% of 100 = Rs 80
Dealers SP = 100 + 40% of 100 = Rs 140
% profit =

140 80
= 75%
80
Ex. 14: If a discount of 10% is given on the
m arked pr i ce of an ar t i cl e, t he
shopkeeper gets a profit of 20%. Find
hi s per cent profi t i f he offers a
discount of 20% on the same article.
Soln:
Suppose the marked price = Rs 100
Then selling price at 10% discount
= Rs (100 10) = Rs 90
Since he gets 20% profit, his cost price
Dealers profit % =

100

75
= Rs
100 20

100

75 = Rs 62.5
= Rs
120

Profit = SP CP
= Rs 75 Rs 62.5 = Rs 12.5
Now,
If the gain is Rs 12.5, then CP is Rs
62. 5.
If the gain is Rs 60, then CP is Rs

K KUNDAN

62.5

60 = Rs 300.

12.5

Ex. 11: Sat ish marks his goods 25% abov e

cost price but allows 12.5% discount
for cash payment. If he sells the article
for Rs 875, find his cost price.
Soln:
Let the cost price of goods be Rs 100.
Marked price = Rs (100 + 25) = Rs 125
Selling price = Rs (125 12.5% of 125)

100
= Rs 75
= 90
120
Now, at 20% discount, the selling price
= Rs (100 20) = Rs 80
Thus his % profit

80 75
500 20
2
100

6 %
75
75
3
3
Ex. 15: An article is marked at a price which
gives a profit of 25%. After allowing a
certain discount, the profit reduces to
=

125

125
= Rs 125
1000

125
875

= Rs
= Rs 125
8

If the selling price is Rs

875
, then
8

cost price = Rs 100

If the selling price is Rs 875, then cost

8 100 875
= Rs 800
price = Rs
875

Ex. 12: The marked price of a radio is Rs 480.

The shopkeeper allows a discount of
10% and gains 8%. If no discount is
allowed, find his gain per cent.

1
%. Find the discount per cent.
2
Let the CP of an article be Rs 100. Then,
to attain a profit of 25% , marked price
must be 25% more than the cost price.
marked price = Rs 100 + Rs 25
= Rs 125
After allowing a certain discount the profit
12

Soln:

reduces to 12
Therefore,
= 12

1
%.
2

Profit = 12

1
% of CP
2

1
1
% of Rs 100 = Rs 12
2
2

306

Concept of Arithmetic

SP = CP + Profit = Rs 100 + 12
= Rs 112

1
2

1
2

Now, MP = SP + Discount
Discount = MP SP
= Rs 125 Rs 112

1
1
= Rs 12
2
2

Discount

100
Discount % =
MP

12

100 = 10
=
125

Hence, discount = 10%

Ex. 16: A tradesman allows a discount of 15%
on the written price. How much above
the cost price must he mark his goods
to make a profit of 19%?
Soln:
Let the CP be Rs 100
We have, Gain = 19% of CP = Rs 19
SP = CP + Gain = Rs 100 + Rs 19
= Rs 119
The trader allows a discount of 15%. This
means that when marked price is Rs 100,
then SP is Rs 85.
Now,
If Rs 85 is the SP, then marked price
= Rs 100
If Re 1 is the SP, then marked price
100
= Rs
85
If Rs 119 is the SP, then

increase per cent =

200

7 100 = 40%
500

Ex. 17: If a shopkeeper marks the price of goods

50% more than their cost price and
allows a discount of 40%, what is his
gain or loss per cent?
Soln:
Let the cost price be Rs x.
Marked price = Rs (x + 50% of x)

50x
3x

= Rs
= Rs x
100

2
Discount = 40% of the marked price
= 40% of Rs

3x
2

40
3x
3x

= Rs
=
2 100
5
Selling Price = Marked Price Discount

9x
3x 3x

= Rs
=
5
2
10
Since Selling Price < Cost Price, there is
a loss and it is given by
9x
x

= Rs
Loss = CP SP = Rs x
10

10

K KUNDAN
100

119 = Rs 140
Marked Price = Rs
85

Hence, the trader must mark his goods

40% above the cost price.
Alternative Method:
Let the marked price be Rs 100.
Discount = 15%
Selling Price = Rs 100 Rs 15 = Rs 85
Profit = 19%

100
SP
Cost Price =
100

Profit
%

100

500
85 = Rs
=
119

7
Increase in marked price with respect to
cost price
= Rs 100 Rs

500
200
= Rs
7
7

Loss % = 10 100 = 10%

x

Hence, there is a loss of 10% .

Ex. 18: A shopkeeper offers 5% discount on all
his goods t o al l hi s cust om er s. He
offers a further discount of 2% on the
reduced price to those customers who
pay cash. What will you actually have
to pay for an article in cash if its MP
(Marked Price) is Rs 4800?
Soln:
We have, MP of the article = Rs 4800
First discount = 5% of MP
= 5% of Rs 4800

4800
= Rs
100

= Rs 240
Net price after discount
= Rs 4800 Rs 240 = Rs 4560
Second discount = 2% of Rs 4560
2

4560
= Rs
100

= Rs 91.20
Net price after discount
= Rs 4560 Rs 91.20 = Rs 4468.80

307

Discount
Alternative Method: ( By Rule of
Fraction)
Marked Price = Rs 4800
First discount = 5%
Second discount = 2%
Net selling price of the goods is the actual
price you have to pay
Selling Price

100 First discount

= Marked Price
100

100 Second discount

100

100 5 100 2

= Rs 4800
100 100

4800 95 98
= Rs

100 100
= Rs 4468.80
Ex. 19: Find the single discount equivalent to
successive discounts of 15% and 20%.
Soln:
Let the marked price be Rs 100.
Then, first discount = 15% of Rs 100
= Rs 15
Net price after first discount
= Rs 100 Rs 15 = Rs 85
Second discount = 20% of Rs 85

Soln:

Marked price of the scooter = Rs 18000

First discount = 10% of Rs 18000

10

18000
= Rs
100

= Rs 1800
Net price after first discount
= Rs 18000 Rs 1800 = Rs 16200
Second discount = 5% of Rs 16200
5

16200
= Rs
100

= Rs 810
Net price after second discount
= Rs 16200 Rs 810 = Rs 15390
Third discount = 2% of Rs 15390
2

15390
= Rs
100

= Rs 307.80
Net price after third discount
= Rs (15390 307.80) = Rs 15082.20
Hence, net selling price is Rs 15082.20
Alternative Method: (By Rule of Fraction)
Net selling price

100 10 100 5

= Rs 18000
100 100

K KUNDAN
20

85
= Rs
100

= Rs 17
Net price after second discount
= Rs 85 Rs 17 = Rs 68
Total discount = Rs (15 + 17) = Rs 32
Hence, the equivalent single discount
= Rs 32 on MP of Rs 100 = 32%
Alternative Method: ( By Rule of
Fraction)
Let the marked price be 100
First discount = 15% and
Second discount = 20%
Net selling price of the goods is the actual
price you have to pay
Selling Price

100 15 100 20

= Rs 100
100 100

100 85 80
= Rs
= Rs 68
100 100
Equivalent discount
= Marked Price Selling Price
= 100 68 = 32%
Ex. 20: An ol d scoot er i s sol d at t hr ee
successive discounts of 10%, 5% and
2%. If the marked price of the scooter
is Rs 18000, find its net selling price.

100 2

100

= Rs 18000

90
95
98

100 100 100

18 9 95 98
100
= Rs 15082.20
Ex. 21: Two successive discounts of 20% and
5% are allowed on an article whose
net selling price is Rs 380. Find its
marked price.
Soln:
Let the marked price be Rs 100.
Then, first discount = 20% of Rs 100
= Rs 20
Net price after first discount
= Rs (100 20) = Rs 80
Second discount = 5% of Rs 80
= Rs

80
= Rs
100

= Rs 4
Net price after second discount
= Rs (80 4) = Rs 76
Thus, net selling price after two discounts
= Rs 76
Now,
If SP of Rs 76, MP = Rs 100

308

Concept of Arithmetic

If SP is Re 1, MP = Rs

100
76

100

380
If SP is Rs 380, MP = Rs
76

= Rs 500
Hence, marked price = Rs 500.
Alternative Method: (By Rule of Fraction)
Selling Price = Rs 380
Let the marked price be Rs x.
Now, according to the question,

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

100 and gets successive discounts of
10% and 20%. He spends 10% of the
cost price on transportation etc. At
what price should he sell the article to
earn a profit of 15%?
Soln:
List price of the article = Rs 100
First discount = 10% of Rs 100 = Rs 10
Net price after first discount
= Rs (100 10) = Rs 90
Second discount = 20% of Rs 90

20

90 = Rs 18
= Rs
100

Net price after second discount

= Rs (90 18) = Rs 72
Transportation cost = 10% of Rs 72

100 20 100 5

380 = x
100 100
or, 380 = x

80
95

100 100

10

72
= Rs
100

= Rs 7.20
CP of the article = Rs (72 + 7.20)
= Rs 79.20
Profit = 15%

380 100 100

= Rs 500
80 95
Ex. 22: The list price of a watch is Rs 160.
After two successive discounts, it is
sold for Rs 122.40. If the first discount
i s 10%, what i s the rat e of second
discount?
Soln:
List price of watch = Rs 160.
First discount = 10% of Rs 160
x =

10

160
= Rs
100

= Rs 16
Net price after first discount
= Rs (160 16) = Rs 144
SP of watch = Rs 122.40
Second discount = Rs (144 122.40)
= Rs 21.60
Since second discount is on Rs 144 ie
price after first discount.
Rate of second discount

SP =

100 Profit %
CP
100

100 15

79 .20 = Rs 91.08
= Rs
100

Ex. 24: An invoice for a machinery plant is

stated as follows: Cost of machinery
plant = Rs 18575.

K KUNDAN
21.60

100 % = 15%
=
144

Alternative Method: (By Rule of Fraction)

List price = Rs 160,
The first discount = 10% and
the selling price = Rs 122.40
Let the rate of second discount be x% .
Now, according to the question,
100 10 100 x

122.40 = 160
100 100

90 (100 x )

or, 122.40 = 160

100
100
12240 100
= 85
160 90
x = 100 85 = 15%
Hence, the second discount is 15% .
or, 100 x =

Terms: Cash 3,

Soln:

2
1
n
,
,
. Find
10
20
30

the discount if,

(i) the bill is paid immediately.
(ii) the bill is paid on the 9th day.
(iii) the bill is paid on the 17th day.
(iv) the bill is paid on the 28th day.
Cost of the plant = Rs 18575
(i) As the bill is paid immediately, cash
discount of 3% is allowed.

18575 3

discount = Rs
100

= Rs 557.25
(ii) As the payment is made of 9th day,
2% discount is allowed.
18575 2

discount = Rs
100

= Rs 371.50
(iii) When the payment is made on 17th
day, 1% discount is allowed.
18575 1

discount = Rs
100

= Rs 185.75

309

Discount
(iv) In case the payment is made after 20
days, no discount is given.
When the payment is made on the
28th day, there is no discount.
Ex. 25: George bought a VCR at the list price
of Rs 18500. If the rate of sales tax
was 8%, find the amount he had to
pay for purchasing the VCR.
Soln:
List price of VCR = Rs 18500
Rate of sales tax = 8%
Sales tax = 8% of Rs 18500

Hence, the basic price of the TV set is Rs

12300.
Ex. 27: Sam i r bought a shir t for Rs 336,
including 12% sales tax and a necktie
for Rs 110 including 10% sales tax.
Find the printed price (without sales
tax) of shirt and necktie together.
Soln:
Let the printed price of the shirt be Rs x
and that of necktie be Rs y. Then,
Sales tax on shirt = 12% of Rs x

12x
3x
= Rs
100
25
Sales tax on necktie = 10% of Rs y
= Rs

8
18500 = Rs 1480
=
100
So, total amount which George had to pay
for purchasing the VCR
= Rs 18500 + Rs 1480 = Rs 19980
Ex. 26: The price of a TV set inclusive of sales
tax is Rs 13530. If the rate of sales
tax is 10%, find its basic price.
Soln:
Let the basic price of TV set be Rs x.
Th en ,
Sales tax at the rate of 10% on Rs x

= Rs

10y
y
= Rs
100
10

Selling price of shirt

3x
28x

= Rs
= Rs x
and,
25

25
Selling price of necktie
y
11y

= Rs
= Rs y
10

10
But selling prices of shirt and necktie are
Rs 336 and Rs 110 respectively.

10

x
x = Rs

= Rs
100

10
Thus, the sale price of the TV set
x
11x

= Rs
= Rs x
10

10
It is given that the sale price of the TV set
is Rs 13530.
11x

= 13530
10

28x
11y
= 336 and
= 110
25
10

K KUNDAN
or, x =

336 25
110 10
and y =
28
11
or, x = 300 and y = 100
Hence, the total printed price of the shirt
and necktie
= Rs (300 + 100) = Rs 400
or, x =

13530 10
= 12300
11

Practice Exercise
1.

2.

3.

4.

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.
A shopkeeper marks his goods 20% above his
cost price. He gives 15% discount on the
marked price. Find his gain per cent.
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.
A shopkeeper marks his goods at such a price

1
that after allowing a discount of 12 % on
2
the marked price, he earns a profit of 20% .

5.

6.

7.

8.

Find the marked price of the article which

costs him Rs 1400.
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?
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?
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%.
By selling an umbrella f or Rs 300, a
shopkeeper gains 20% . During a clearance
sale, the shopkeeper allows a discount of 10%
on the marked price. Find his gain per cent
during the sale season.

310
9.

10.

11.

12.

13.

Concept of Arithmetic
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?
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.
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.
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.
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
25% .
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?
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.
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?
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.
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

19.

20.

21.

22.

23.

profit when all the goods are sold and the

amount realised?
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.
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.
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.
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.
Shilpa buys a washing machine quoted at Rs

4
2
n
,
,
.
10 20 30
Find the amount she will have to pay if the
payment is made on the 7th day.
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?
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?
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.
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
remaining goods at 50% of the marked price.
Determine his profit per cent on the whole
transaction.
16800 on the terms of cash 5,

K KUNDAN

14.

15.

16.

17.

18.

3
th of the goods are sold for cash
5
and rest on credit. What is the percentage of
customers.

24.

25.

26.

27.

311

Discount

Answers and explanations

1.

2.

We have,
List price of one Video cassette = Rs 100
List price of three Video cassettes = Rs 300
SP of three Video cassettes = Rs 274.50
Discount = Rs (300 274.50) = Rs 25.50

5.

Let the cost price be Rs x.

Marked price = Rs (x + 25% of x)

25x
5x

= Rs
= Rs x
100

4
Discount = 8% of the marked price

25.50

100 = 8.5%
Rate of discount =
300

Let the cost price be Rs 100.

100 120
Marked Price = Rs
= Rs 120
100
Rate of discount = 15%

8
x
5x

= Rs
= Rs
4 100
10
Selling Price = Marked Price Discount
x
5x
25 x 2x

= Rs

= Rs
20
4 10

120 85
= Rs 102
100
Gain % = Rs 102 Rs 100 = 2%
Let the marked price of the item be Rs 100.
Discount = 10%
Discounted price for the shopkeeper
= Rs (100 10) = Rs 90
Sales tax = 8% of the discounted price
= 8% of Rs 90

3x
23 x

x = Rs
Gain = SP CP = Rs
20

20

90 = Rs 7.20
= Rs
100

Selling price for the shopkeeper

= Rs 90 + Rs 7.20 = Rs Rs 97.20
Now,
If selling price is Rs 97.20, then marked
price is Rs 100.
If selling price is Rs 680.40, then marked

Alternative Method:
Let the CP of the article be Rs 100.
Marked price of the article = Rs 125
The trader allows a discount of 8% .
SP = (100 8)% of Rs 125

Selling Price = Rs
3.

= Rs

23x
20

3x

20

100 = 15%
Gain % =
x

K KUNDAN
4.

680 .40 100

= Rs 700.
price is Rs
97 .20

Marked Price = Rs 700.

We have, CP of the article = Rs 1400
Gain = 20%
100 Gain%
SP =
100

CP

100 20

1400
= Rs
100

120 1400
= Rs 1680
= Rs
100

Now, let the marked price be Rs 100.

Then, discount allowed = 12.5% of MP
= Rs 12.5
SP of the article = MP Discount
= Rs (100 12.5) = Rs 87.5
Thus,
When SP is Rs 87.5, MP = Rs 100
100

1680
When SP is Rs 1680, MP = Rs
87.5

= Rs 1920

125 92
= Rs 115
100
Since the CP of the article is Rs 100, hence
the profit per cent = (115 100 =) 15%
Let the cost price be Rs x.
Marked price = Rs (x + 20% of x)
= Rs

6.

20x

6x
= Rs
= Rs x
100

5
Gain % = 14%

100 Gain%

CP
Selling Price =
100

100 14

57x
x = Rs
= Rs
100

50
Discount = Marked Price Selling Price
6x 57 x
3x

= Rs
= Rs
50
5
50
3x
50 100 3x 5 100
Rate of discount =
6x
50 6x
5
= 5%

312
7.

Concept of Arithmetic
Suppose the marked price = Rs 100
Then selling price at 20% discount
= Rs (100 20) = Rs 80
Since he gets 20% profit, his cost price

200
100
80 5
= Rs 80
= Rs
= Rs
100 20
6
3
Now, at 10% discount, the selling price
= Rs (100 10) = Rs 90
Profit = Selling Price Cost Price

He wants to make a profit of 25% on this cost

price.

25 80

Selling price = Rs 80
100

= Rs (80 + 20) = Rs 100

This becomes final selling price of the goods
after discount of 20% .
Now, let the marked price of goods be Rs x.
Now, according to the question,

200
70

= Rs
= Rs 90
3

3
Thus, his per cent profit
70
3 100 70 3 100
=
= 35%
200
3 200
3
8.

Selling price of the umbrella = Rs 300

Gain% = 20%

100
= Rs 250
Cost price = Rs 300
100 20
Here, marked price is the selling price
= Rs 300.
New selling price (during the sale season)
100 10
= Rs 270
= Rs 300
100
Gain = Selling Price Cost Price
= Rs (270 250) = Rs 20

or,

20 x
100
100

100 x 20 x
100
100

or, 80x 10000

10000
125
80
The marked price of the goods should be
Rs 125.
Hence the trader should mark the price of
the goods (125 100 =) 25% above the list
price.
11. Let the cost price of the goods sold during
the month be Rs 100x.
Marked price, 15% above the cost price
= Rs 115x
Sales price after 5% discount on marked price
or, x =

K KUNDAN
20
100 = 8%
250
Let the CP be Rs 100.
We have, Gain = 10% of CP = Rs 10
SP = CP + Gain = Rs 100 + Rs 10 = Rs 110
The person allows a discount of 10% . This
means that when marked price is Rs 100,
then SP is Rs 90.
Now,
If Rs 90 is the SP, then marked price is Rs
100.
If Rs 110 is the SP, then marked price is
Gain % =

9.

1100
100

110 = Rs
Rs
90

9
Hence, the person must mark his goods
2
1100
200
100
22 % above the cost

9
9
9

price.
10. Let the list price be Rs 100.
Cost price after 20% discount
20

100
= Rs 100
100

= Rs (100 20) = Rs 80

95 115 x
100
Expenses during the month = Rs 6500
Owners profit = 6%
So, according to the question,

95 115x
6500 106x
100
or, 95 115x 106x 100 = 650000
or, 10925x 10600x = 650000
or, 325x = 650000
650000
= Rs 2000
325
But CP is 100x = 100 2000 = Rs 200000.
12. Let the marked price be Rs 100
Selling price = Rs (100 15) = Rs 85
or, x =

100
Cost price at 19% profit = 85 (100 19)

85 100
500
= Rs
119
7
New cost of production after increase of 12%
=

500 112

= Rs 80
7
100
New list price is Rs (100 + 10) = Rs 110
=

313

Discount
New selling price after discount of 15%

110 85
100 15
=
= 110
= Rs 93.50
100
100
Profit = Selling Price Cost of Production
= Rs (93.50 80) = Rs 13.50
13.50
100 = 16.875%
80
13. ( i ) Let the list price be Rs 100
In first case,
Profit % =

First discount of 20% = Rs 100

20
100

= Rs 20
Price after first discount = Rs (100 20)
= Rs 80
Now, second discount of 15%
15 80
= Rs 12
= Rs
100
Net price = Rs (80 12) = Rs 68
( i i) First discount 10%

10
= Rs 10
100
Price after first discount = Rs (100 10)
= Rs 90
Now,
= Rs 100

Cost price after 8% discount

8 74.80
= Rs 68.816
100
It can be seen from the above that the first
discount series is more favourable.
15. Marked price of an article = Rs 800
First discount = 25% of Rs 800
= 74.80

25

= Rs 200
= Rs 800
100

Net price after first discount

= Rs (800 200) = Rs 600
SP of article = Rs 540
Second discount = Rs (600 540) = Rs 60
Since second discount is on Rs 600 ie price
after first discount.
60

100 %
Rate of second discount =
600

= 10%
16. Let the marked price be Rs 100
Price after discount of 20%
20 100

100
= Rs 80
100

Price after discount of 6.25%

= Rs

6.25 80

= Rs 75
= Rs 80
100

Single equivalent discount

= (100 75) = 25%
Again, let the CP be Rs 100.
We have gain % = 20%

K KUNDAN

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%
Cost price after 20% discount
Second discount of 25% =

20 100
= Rs 80
100
Cost price after 10% discount
= 100

10 80
= Rs 72
100
Cost price after 5% discount
= 80

5 72
= Rs 68.40
100
Second discount series 15%, 12% and 8%
Cost price after 15% discount
= 72

15 100
= Rs 85
100
Cost price after 12% discount
= 100

= 85

12 85
= Rs 74.80
100

100 20
100 = Rs 120
SP = Rs
100
Now a discount of 25% is allowed. This means
that when marked price is Rs 100, then SP
is Rs (100 25) = Rs 75
Now,
If Rs 75 is the SP, then maked price is
Rs 100.
If Rs 120 is the SP, then maked price is

100

120 = Rs 160
Rs
75

Hence marked price will be (160 100) = 60%

more than the cost price.
17. Marked Price = Rs 1500
Successive discounts = 20% and 10%
After 20% discount,
Price = 80% of Rs 1500
80

1500 = Rs 1200
= Rs
100

After 10% discount,

Price = 90% of Rs 1200
90

1200 = Rs 1080
= Rs
100

314

Concept of Arithmetic
Transportation cost = Rs 20
Effective cost price = Rs 1080 + Rs 20
= Rs 1100
Profit = 10%

100 Profit%
Cost Price
Selling Price =
100

100 10

1100
= Rs
100

110

1100 = Rs 1210
= Rs
100

18. Let the cost price for manufacturer be Rs 100

Marked price of the goods

40 100
= Rs (100 + 40) = Rs 140
100
According to the question,

Selling price of the radio

7x
107x

= Rs
= Rs x
100

100
But the selling price of the set is Rs 2568.

107x
= 2568
100

2568 100
= Rs 2400.
107
Hence, the reduction needed in the price of
the radio = Rs (2568 2400) = Rs 168
2 0 . Let the rate of sales tax be x%. Then
Sales tax = x% of Rs 420
or, x =

21x
x

420 = Rs
= Rs
100

= 100

He sells

3
th of his goods on cash at 10%
5

discount

21x

Selling price of shoes = Rs 420

5

But selling price of shoes is Rs 441.

420

Marked price of

3
th goods
5

3
140 = Rs 84
5
10% discount = Rs 8.40
=

21x
= 441
5

21x
= 21
5
x = 5
Hence, the rate of sales tax is 5%.
21. Marked price of motorcycle = Rs 46000
Discount = 5% of Rs 46000
5

46000 = Rs 2300
= Rs
100

Net price of motorcycle

= Rs 46000 Rs 2300 = Rs 43700
Sales tax = 10% of Rs 43700
10

43700 = Rs 4370
= Rs
100

SP of motorcycle = Rs (43700 + 4370)

= Rs 48070
Hence, Amit has paid Rs 48070 to purchase
the motorcycle.
2 2 . The list price of air-conditioner = Rs 25630
Rate of sales tax = 10%
Selling price of air-conditioner with sales tax
or,

K KUNDAN
3
th goods
5
= Rs 84 Rs 8.40 = Rs 75.60

Selling price of

He sells

2
th of the goods on credit at 5%
5

discount.
So, marked price of

2
th goods
5

2
140 = Rs 56
5

5% discount = 56

5
= Rs 2.80
100

2
th goods
5
= Rs (56 2.80) = Rs 53.20
Selling price of goods under both category
= Rs (75.60 + 53.20) = Rs 128.80
Profit = Selling price Cost price
= Rs (128.80 100) = Rs 28.80
Profit = 28.80%
19. Let the reduced price, excluding the sales
tax, of the radio be Rs x. Then,
Selling price of

Sales tax = 7% of Rs x = Rs

7x
100

25630 110
= Rs 28193
100
Let the rate of discount given = x%
According to the question,
= Rs

28193 x
= 25630
100
or, 2819300 28193x = 100 25630
28193

or, x =

2819300 2563000 100

1

9
28193
11
11

Hence, the rate of discount = 9

1
%
11

315

Discount
23. Cost price of washing machine = Rs 16800.
As the payment is made on the 7th day, cash
discount of 4% is allowed.

16800 4
= Rs 672
Discount = Rs
100

Required amount paid by her

= Rs (16800 6782) = Rs 16128
24. Let the shopkeeper sell 100 articles of cost
price Rs 100 each.
The shopkeeper fixes the marked price at 12%
above the CP.
Marked price of each article
= Rs (100 + 20) = Rs 120
He sells half the stock at marked price.
SP of 50 articles = Rs (120 50) = Rs 6000
Total marked price of 25 articles
= Rs (25 120) = Rs 3000
15

= Rs 450
Discount (at 15%) = Rs 3000
100

Selling price = Rs (3000 450) = Rs 2550

Remaining 25 ar t icles ar e sold at 30%
discount.
Marked price (total) = Rs 3000
30

= Rs 900
Discount = Rs 3000
100

SP = Rs (3000 900) = Rs 2100

Hence, total SP = Rs (6000 + 2550 + 2100)
= Rs 10650
Total CP = Rs (100 100) = Rs 10000
Profit = Rs (10650 10000) = Rs 650

20

( x 200 )
Bs commission = Rs
100

x 200

= Rs
5

Now, according to the question,

x 100 x 200

10
5
or, 10x 2000 = 5x 500
or, 10x 5x = 2000 500
or, 5x = 1500
1500
= 300
5
Hence, the marked price of the article
= Rs 300
26. Cost price of first retailer A = Rs 40000
He sells it at a profit of 20%.
x =

20
= Rs 8000
100
CP of second retailer ie B = Rs 40000
He marks it at 30% profit.
His profit = 40000

100 30
100
= 400 130 = Rs 52000
Bs SP after giving 8% rebate becomes
His marked price = 40000

K KUNDAN

650 100
= 6.5%
10000
25. Let the marked price of article be Rs x.
For salesman A,
SP of article = Rs (x 100)
Gain % =

10

(x 100 )
As commission = Rs
100

x 100

= Rs
10
For salesman B,
SP of article = Rs (x 200)

(100 8)
100
= Rs (520 92) = Rs 47840
Bs profit = Rs (47840 40000) = Rs 7840
27. Let the shopkeeper have 100 articles and the
cost of each article be Rs 100.
Total CP = Rs (100 100) = Rs 10000
Now, CP of each article be Rs 120.
According to the question,
= Rs 52000

1
3

Total SP = Rs 100 120 100 60

4
4

= Rs (9000 + 1500) = Rs 10500

Gain = Rs (10500 10000) = Rs 500
Gain % =

500
100 = 5%
10000