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A car company has an exchange offer on new cars. Under the offer a customer gets 25% discount if he gives a car in exchange that has been driven less than 10000 km and this discount is reduced by 1% for every 5000-extra run. A person has a car that has been driven 20000 km. What amount will he pay for new car that has a selling price of Rs. 700000?

A car company has an exchange offer on new cars. Under the offer a customer gets 25% discount if he gives a car in exchange that has been driven less than 10000 km and this discount is reduced by 1% for every 5000-extra run. A person has a car that has been driven 20000 km. What amount will he pay for new car that has a selling price of Rs. 700000? Correct Answer Rs. 539000

The car is driven = 20000 Km

Discount = 25 - 1 - 1 = 23%

Selling price of new car = 700000

Discount = 0.23 × 700000 = 161000

∴ The amount to be paid = 700000 - 161000 = Rs. 539000

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