Rahul went to purchase a Nokia mobile handset, the shopkeeper told him to pay 20% tax if he asked for the bill. Rahul manages to get the discount of 5% on the actual selling price of the mobile and he paid the shopkeeper Rs. 3325 without tax. Besides he manages to avoid to pay 20% tax on the already discounted price, what is the amount of discount that he got?
Rahul went to purchase a Nokia mobile handset, the shopkeeper told him to pay 20% tax if he asked for the bill. Rahul manages to get the discount of 5% on the actual selling price of the mobile and he paid the shopkeeper Rs. 3325 without tax. Besides he manages to avoid to pay 20% tax on the already discounted price, what is the amount of discount that he got? Correct Answer Rs. 875
Given:
Tax to be paid if he asked for the bill = 20%
Discount on actual selling price of the mobile = 5%
Amount paid by Rahul to the shopkeeper without tax = Rs. 3325
Rahul manages to avoid to pay tax on the already discounted price = 20%
Calculation:
Let CP be 100
Then, SP with tax = 120
New SP = 100 – 5 = 95
Effective discount = SP with tax – New SP
Effective discount = 120 – 95 = 25
⇒ At SP of 95 discount = 25
Then, at SP of 3325 discount = 3325 × (25/95) = 875
∴ Amount of discount he got = Rs. 875
