BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$20.27
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$1, 118.25
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$1, 153.25
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$1, 278.00
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Detailed explanation-1: -Get the the discount percentage (for example 20% ) Calculate the savings: 20% of $90 = $18. Subtract the savings from the original price to get the sale price: $90-$18 = $72.
Detailed explanation-2: -In that 20/10/5 split, the 20 percent is taken off the entire purchase amount, while the 10 percent is deducted from what remains, and the five percent deducted from what’s left over after the 10 percent is deducted.
Detailed explanation-3: -Trade discounts are usually based on the list price (catalogue price). Sales are recorded based on net price. Net price = List price – Trade discount. Therefore, trade discounts are not recorded in the books of accounts.
Detailed explanation-4: -List Price = Rs 220. Also, Discount = 10% of List Price or we can write = (10/100) × 220 = Rs 22. Thus we can write: S.P. = List Price – Discount = 220 – 22 = Rs 198.