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1. The cost of manufacturing of a tape recorder is Rs. 1500. The manufacturer fixes the marked price 20% above the cost of manufacture and allows a discount in such a way as to get a profit of 8%. The rate of discount is = ?

A. 12%

B. 8%

C. 20%

D. 10%

Solution:

Cost price of tape recorder = Rs. 1500
Marked price of tape recorder

\begin{aligned} =  120 % of 1500 \\ = \frac{120}{100} \times 1500 \\ =  Rs . 1800 \end{aligned}

Selling price of tape recorder

\begin{aligned} =  108 % of 1500 \\ = \frac{108}{100} \times 1500 \\ =  Rs . 1620 \\ Rate of discount \\ = \frac{1800 - 1620}{1800} \times 100 % \\ = \frac{180}{1800} \times 100 \\ = 10 % \end{aligned}

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