Question

A shop owner offers the following discount options on an article to a customer:

1. Successive discounts or 10% and 20%, and then pay a service tax of 10%
2. Successive discounts of 20% and 10%, and then pay a service tax of 10%
3. Pay a service tax or 10% first, then successive discounts of 20% and 10% Which one of the following is correct?

a)1 only is the best option for the customer.
b)2 only is the best option for the customer.
c)3 only is the best option for the customer.
d)All the options are equally good for the customer.

Answer 1

The customer has three discount options with service tax. After calculating the final prices for each option, it is determined that all the options result in the same price, making them equally good choices for the customer. The correct answer is d)

Step-by-step explanation:

To determine which discount option is best for the customer, we need to compare the final price after applying the discounts and service tax for each option.

1. For option 1, if the original price of the article is $100, the first discount of 10% would be $10, resulting in a price of $90. The second discount of 20% would be $18, resulting in a price of $72. Finally, adding a service tax of 10% would be $7.2, resulting in a final price of $79.2.
2. For option 2, if the original price of the article is $100, the first discount of 20% would be $20, resulting in a price of $80. The second discount of 10% would be $8, resulting in a price of $72. Finally, adding a service tax of 10% would be $7.2, resulting in a final price of $79.2.
3. For option 3, if the original price of the article is $100, the service tax of 10% would be $10, resulting in a price of $110. The first discount of 20% would be $22, resulting in a price of $88. The second discount of 10% would be $8.8, resulting in a final price of $79.2.

Therefore, all the options result in the same final price of $79.2, so the correct answer is d) All the options are equally good for the customer.