True Discount Practice Questions

5 questions per page • Detailed step-by-step solutions

Question 1
Easy
List price of an article at a showroom is Rs. 2000 and it is being sold at successive discount of 20% and 10%, its net selling price will be = ?
A Rs. 1400
B Rs. 1440
C Rs. 1480
D Rs. 1500
Correct Answer: B

Explanation:

List price = Rs. 2000. Price after first discount of 20% = 2000 * 0.80 = Rs. 1600. Price after second discount of 10% = 1600 * 0.90 = Rs. 1440.
Question 2
Medium
The banker's discount on a bill due 6 months hence at 16% per annum is Rs. 216. The true discount is = ?
A Rs. 195
B Rs. 200
C Rs. 204
D Rs. 208
Correct Answer: B

Explanation:

BD = Rs. 216. Rate R = 16% p.a., Time T = 6/12 = 1/2 year. Simple interest for the period = (R × T) / 100 = (16 × 0.5) / 100 = 8/100 = 0.08. Relation between BD and TD: BD = TD × (1 + RT/100) => 216 = TD × (1 + 0.08) => TD = 216 / 1.08 = Rs. 200.
Question 3
Medium
A double bed is market at Rs. 75000. The shopkeeper allows successive discounts of 8%, 5% and 2% on it. What is the net selling price ?
A Rs. 64239
B Rs. 64850
C Rs. 65125
D Rs. 65400
Correct Answer: A

Explanation:

Net SP = 75000 × (1 - 0.08) × (1 - 0.05) × (1 - 0.02) = 75000 × 0.92 × 0.95 × 0.98 = 69000 × 0.95 × 0.98 = 65550 × 0.98 = Rs. 64,239.
Question 4
Medium
The present worth of Rs. 1404 due in two equal half-yearly installments at 8% per annum simple interest is:
A Rs. 1280
B Rs. 1300
C Rs. 1325
D Rs. 1350
Correct Answer: C

Explanation:

Each installment = 1404 / 2 = Rs. 702. First installment is due 6 months (1/2 year) hence at 8% p.a. PW1 = 702 / [1 + (8 * 0.5) / 100] = 702 / 1.04 = Rs. 675. Second installment is due 1 year hence at 8% p.a. PW2 = 702 / [1 + (8 * 1) / 100] = 702 / 1.08 = Rs. 650. Total present worth = 675 + 650 = Rs. 1325.
Question 5
Easy
A tradesman marks his goods 10% above his cost price. If he allows his customers 10% discount on the marked price. How much profit or loss does he make, if any ?
A 1% profit
B 1% loss
C 2% loss
D No profit, no loss
Correct Answer: B

Explanation:

Let Cost Price = 100. Marked Price = 100 + 10% of 100 = 110. Selling Price = 110 - 10% of 110 = 110 - 11 = 99. Net result = 99 - 100 = -1 (1% loss).