A machine was offered a 16% trade discount on the marked price of ₹30,000. After some cash discount, the machine was sold for ₹23,184. The cash discount is:

Correct option is D

Given:

Marked Price of machine =₹30,000

Selling Price =₹23,184

Trade discount = 16%

Formula Used:

Discount = $$\frac{Discount\ Percent}{100} \times Marked\ Price$$​​

Selling Price = Marked Price - Discount

Solution:

Discount =$$\frac{16}{100} \times 30000= ₹ 4800$$​​

Selling Price after trade discount = 30000 - 4800 = ₹ 25200

Cash Discount = 25200 - 23184 = ₹2016

Percent of cash discount $$= \frac{2016}{25200} \times 100 = 8\%$$​​

Alternative Method:

Successive Discount =$$d_1 + d_2 - \frac{d_1 d_2}{100}$$​​

Total discount = 30000 -23184 = ₹6816

Overall discount =$$\frac{6816}{30000}\times 100 = 22.72$$​​

​$$22.72 = 16 + d_2 - \frac{16 d_2}{100}$$​​

​$$6.72 = d_2 - 0.16d_2$$​​

​$$6.72 = 0.84d_2$$​​

​$$d_2 = \frac{6.72}{0.84} = 8\%$$​​