Chapter 2.

DISCOUNT
Formulae:

Trade discount = (rate of trade discount * list price) / 100

Invoice price = List price Trade discount
Cash discount = (rate of cash discount * Invoice price) / 100
Net price = Invoice price Cash discount
If Cash discount = 0, Net price = Invoice price = List price Discount

1. A company allows 10% trade discount and a further discount of 3% for cash payment.
What is the net price of an article marked for Rs.4570?
2. A school bag listed for Rs.500 was sold for Rs.485. What is the rate of discount given?
3. A shopkeeper allows a trade discount of 15% and a cash discount of 4%. If he sold a
television set for Rs.11250, what is the list price of the television?
4. Vijay electronics sold an air conditioner at a net price of Rs.16128 after allowing a trade
discount of 16% and a further discount of 4% for cash payment. If the profit made was
Rs.2128, find the cost price and the marked price of the air conditioner.
5. A dealer buys a bike for Rs.62000. He wants to make a profit of 45% after giving a
discount of 15%. What should be the list price of the bike?
6. A merchant gives 28% trade discount and sells an article for Rs.3400 and thus he makes
16 % profit on cost. Find the list price and the cost price of the article.
7. What is the rate of profit made after marking goods 70% above cost and then allowing
15% trade discount and a further discount of 6% for cash payment?

8. A manufacturer makes a profit of 20% on cost after allowing trade discount of 18%. If
cost of production increases by 15%, find the new rate of discount if the manufacturer
makes the same profit without changing the list price.
9. An agent is instructed by the manufacturer to allow trade discount at 18% and receives
commission at 5% on the net selling price. If the agent sells goods marked for Rs.12000,
find the commission received by the agent.
10. An agent is instructed by his principal to allow a trade discount of 10% and 5% cash
discount. The agent receives a commission at 6% on the net selling price and hence earns
Rs.800. Find the list price of the product.
Note: The above questions are from the book Mathematics and Statistics by R. Annapoornaa.