True Discount Practice Questions

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

Question 21
Hard
A dealer offers a cash discount of 20% and still makes a profit of 20%. If he further sells 8 articles at a rate of 6 articles, then how much percentage above the cost price does he mark on each article?
A 80%
B 90%
C 100%
D 110%
Correct Answer: C

Explanation:

Selling 8 articles for the price of 6 represents an additional effective discount of (8 - 6)/8 = 25%. Effective discount = 20% cash + 25% free goods = 20 + 25 - (20 × 25)/100 = 40%. Profit = 20%. Relation: MP / CP = (100 + Profit) / (100 - Discount) = 120 / 60 = 2 / 1. Marked price is 100% above cost price.
Question 22
Easy
The equivalent single discount for two successive discounts of 15% and 10% is = ?
A 22.5%
B 23.5%
C 24%
D 25%
Correct Answer: B

Explanation:

Formula for successive discounts d1 and d2 = d1 + d2 - (d1 * d2)/100 = 15 + 10 - (15 * 10)/100 = 25 - 1.5 = 23.5%.
Question 23
Medium
If the true discount on a sum due 2 years hence at 14% per annum be Rs. 168, the sum due is:
A Rs. 720
B Rs. 768
C Rs. 800
D Rs. 820
Correct Answer: B

Explanation:

TD = Rs. 168, T = 2 years, R = 14% p.a. PW = (100 * TD) / (R * T) = (100 * 168) / (14 * 2) = 16800 / 28 = Rs. 600. Sum due (Amount) = PW + TD = 600 + 168 = Rs. 768.
Question 24
Easy
A discount of 14% on the marked price of an article is allowed and then the article is sold for Rs. 387. The marked price of the article is = ?
A Rs. 420
B Rs. 440
C Rs. 450
D Rs. 460
Correct Answer: C

Explanation:

Discount = 14%, so Selling Price = (100 - 14)% = 86% of Marked Price. 0.86 * MP = 387 => MP = 387 / 0.86 = 38700 / 86 = Rs. 450.
Question 25
Medium
The true discount on a bill due 9 months hence at 16% per annum is Rs. 189. The amount of the bill is:
A Rs. 1575
B Rs. 1650
C Rs. 1764
D Rs. 1890
Correct Answer: C

Explanation:

TD = Rs. 189, Time T = 9/12 = 3/4 year, Rate R = 16% p.a. PW = (100 * TD) / (R * T) = (100 * 189) / (16 * 3/4) = 18900 / 12 = Rs. 1575. Amount of the bill = PW + TD = 1575 + 189 = Rs. 1764.