Question Details

A trader gives 10% discount on the marked price but adds 5% tax on the discounted price. Quantity I. If the selling price of the article is Rs. 850.5 then what is the marked price of the article? Quantity II. Rs. 900

Options

A

Quantity I ≤ Quantity lI

B

Quantity | < Quantity Il

C

Quantity I > Quantity Il

D

Quantity | = Quantity ll or no relation can be established

E

Quantity I ≥ Quantity lI

Show Answer

Correct Answer :

Option D

Quantity | = Quantity ll or no relation can be established

Solution :

To find the relationship between Quantity I and Quantity II, we need to calculate the value of Quantity I and compare it with Quantity II.

Step 1: Understand the discount and tax structure
Let the marked price of the article be M.
The trader gives a 10% discount on the marked price.
Therefore, the discounted price is:
Discounted Price=M-0.10M=0.90M

Next, the trader adds a 5% tax on this discounted price.
Therefore, the final selling price (SP) is:
Selling Price=0.90M×(1+0.05)
Selling Price=0.90M×1.05
Selling Price=0.945M

Step 2: Calculate Quantity I
We are given that the selling price of the article is Rs. 850.5.
Set up the equation to solve for the marked price (M):
0.945M=850.5
M=850.50.945
Let us simplify this division:
M=850500945
Dividing 850500 by 945:
Since 945×9=8505, we have:
M=900

Thus, the marked price of the article (Quantity I) is Rs. 900.

Step 3: Compare Quantity I and Quantity II
Quantity I = Rs. 900
Quantity II = Rs. 900
Comparing the two values, we find that Quantity I = Quantity II.

Therefore, the correct relationship is Quantity I = Quantity II.

The correct option is: Quantity | = Quantity ll or no relation can be established

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