A shop owner offers the following discount options on an article to a

1.	A shop owner offers the following discount options on an article to a customer:1. Successive discounts of 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax of 10% first, then successive discounts of 20% and 10%Which one of the following is correct?1. 1 only is the best option for the customer.2. 2 only is the best option for the customer.3. 3 only is the best option for the customer.4. All the options are equally good for the customer.
Answer» Correct Answer - Option 4 : All the options are equally good for the customer. Concept used: Successive discount Calculation: Let the cost price of the article be x For 1^st type = \({\rm{x}} \times \frac{{90}}{{100}} \times \frac{{80}}{{100}} \times \frac{{110}}{{100}} = {\rm{\;}}0.792{\rm{x}}\) For 2^nd type = \({\rm{x}} \times \frac{{80}}{{100}} \times \frac{{90}}{{100}} \times \frac{{110}}{{100}} = {\rm{\;}}0.792{\rm{x}}\) For 3^rd type = \({\rm{x}} \times \frac{{110}}{{100}} \times \frac{{80}}{{100}} \times \frac{{90}}{{100}} = {\rm{\;}}0.792{\rm{x}}\) For every types effective discount is same ∴ Option 4 is the correct answer

A shop owner offers the following discount options on an article to a customer:1. Successive discounts of 10% and 20%, and then pay a service tax of 10%2. Successive discounts of 20% and 10%, and then pay a service tax of 10%3. Pay a service tax of 10% first, then successive discounts of 20% and 10%Which one of the following is correct?1. 1 only is the best option for the customer.2. 2 only is the best option for the customer.3. 3 only is the best option for the customer.4. All the options are equally good for the customer.

Answer» Correct Answer - Option 4 : All the options are equally good for the customer.

Concept used:

Successive discount

Calculation:

Let the cost price of the article be x

For 1^st type = \({\rm{x}} \times \frac{{90}}{{100}} \times \frac{{80}}{{100}} \times \frac{{110}}{{100}} = {\rm{\;}}0.792{\rm{x}}\)

For 2^nd type = \({\rm{x}} \times \frac{{80}}{{100}} \times \frac{{90}}{{100}} \times \frac{{110}}{{100}} = {\rm{\;}}0.792{\rm{x}}\)

For 3^rd type = \({\rm{x}} \times \frac{{110}}{{100}} \times \frac{{80}}{{100}} \times \frac{{90}}{{100}} = {\rm{\;}}0.792{\rm{x}}\)