A tractor manufacturing company sells each tractor for ₹5,00,000. Assuming that KISAN firm buys 50 tractors from them as a part of an annual contract, the company offers a trade discount of 10% to KISAN and an additional 2% discount if the payment is made within 30 days. What will be the amount payable by KISAN within 30 days for the consignment?
- A₹22,080,100
- B₹24,050,020
- C₹20,051,000
- D₹22,050,000
Solution & Step-by-step Explanation
1. Total List Price of 50 tractors:
Total Price=50×5,00,000=₹2,50,000,000
After Trade Discount of 10%:
Price after 1st discount=2,50,000,000×(1−
100
10
)=2,50,000,000×0.9=₹2,25,000,000
After Additional Cash Discount of 2% (since payment is made within 30 days):
Final Amount Payable=2,25,000,000×(1−
100
2
)=2,25,000,000×0.98
Final Amount Payable=₹22,050,000
Total Price=50×5,00,000=₹2,50,000,000
After Trade Discount of 10%:
Price after 1st discount=2,50,000,000×(1−
100
10
)=2,50,000,000×0.9=₹2,25,000,000
After Additional Cash Discount of 2% (since payment is made within 30 days):
Final Amount Payable=2,25,000,000×(1−
100
2
)=2,25,000,000×0.98
Final Amount Payable=₹22,050,000