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Worked Examples · Example 6

Q.The marked price of goods is ₹8,000. A trader is allowed a trade discount of 10% and, for paying promptly, a further cash discount of 5%. Find the amount the trader finally pays.

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Step 1 — Trade discount on the marked price.

Invoice price=8000(1−10100)=8000×0.90=₹7,200.\text{Invoice price}=8000\left(1-\frac{10}{100}\right)=8000\times0.90=₹7{,}200.

Step 2 — Cash discount on the invoice price (not on the original ₹8,000₹8{,}000):

Amount paid=7200(1−5100)=7200×0.95=₹6,840.\text{Amount paid}=7200\left(1-\frac{5}{100}\right)=7200\times0.95=₹6{,}840. …

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