2022 · Q27
A person buys an item from a shop for which the shopkeeper offers a discount of 10% on the marked price. The person pays using an e-wallet which gives 10% cash back. Which one of the following is the value of effective discount?
general-mental-abilityquantitative-aptitude
- A20%
- B18%
- C19%
- D21%
Explanation
Take the marked price as Rs. 100. The 10% shop discount reduces the price to Rs. 90. The 10% cash back applies on the amount paid (Rs. 90), giving Rs. 9 back, so the net outgo is Rs. 81. The effective discount on the marked price is therefore (100 − 81)/100 = 19%. It is not 20%, because the cash back is earned on the discounted price, not the marked price. Hence option C.