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A company pays rent of Rs. 25000 per month for office space to its owner. But if the company pays the annual rent at the beginning of the year the owner gives a discount of 5% on the total annual rent. What is the annual amount the company pays to the owner after the discount ?

A company pays rent of Rs. 25000 per month for office space to its owner. But if the company pays the annual rent at the beginning of the year the owner gives a discount of 5% on the total annual rent. What is the annual amount the company pays to the owner after the discount ? Correct Answer Rs. 285000

Total annual rent :
= Rs. (25000 × 12)
= Rs. 300000
Discount :
= 5% of Rs. 300000
= Rs. $$\left( {\frac{5}{{100}} \times 300000} \right)$$
= Rs. 15000
∴ Annual rent paid after discount :
= Rs. 300000 - 15000
= Rs. 285000

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