Q.A retailer buys goods with a list price of ₹40,000. He is allowed a trade discount of 20% and, for paying immediately, a cash discount of 5%. Find the amount the retailer actually pays.

Deduct the trade discount from the list price first, then the cash discount from that invoice price.

Step 1 — Invoice price (after 20% trade discount):

Step 2 — Cash discount (5% on the invoice price):

Amount paid = invoice price − cash discount:

$32000-1600 = 30400.$ …

In one line, amount paid $=40000\times\tfrac{80}{100}\times\tfrac{95}{1 …

Calculating the cash discount on the list price (₹40,000) instead of on the invoice price (₹32,000). Cash discount always ap …