Wednesday, July 21, 2010

What do we mean by cash discount in this question?

A photo machine operator purchased 20 packets of papers. The market price of a packet is Rs.144. He gets a discount of 17.5% and an additional 5% for cash. How much did he pay for the whole quantity?

What do we mean by cash discount in this question?
I think the individual receives an extra 5% of the purchase price if he pays in cash versus an alternative method (check or credit card); thus, the total discount to be applied would be 22.5% of (20*144).


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