Question

A trader buys some TVs at 20% rebate on a printed price Rs18,000. For a long time he could not sell any TV. So, he sells it by giving a rebate of Rs2700 on printed price, what amount of profit or loss does he make? How much percentage of rebate does a customer earn?
A) Profit Rs 500, 20% Rebate
B) Profit Rs 100, 25% Rebate
C) Profit Rs 900, 15% Rebate
D) None of these

Answer 1

First calculate the rebate value from the original price of tv and rebate given tv in the first case. Then find the rebate percentage with the original price of tv and the rebate amount. Subtracting both the rebate amount we get how much profit he has earned.

Complete step-by-step answer:
A rebate is a deduction from a certain amount. So being able to calculate a discount tells you how much money off of a certain amount you're taking.
Convert your rebate percentage to a decimal. To convert your 20 percent into a decimal, you divide by 100.
$\Rightarrow \dfrac{{20}}{{100}} = 0.20$
Then multiply your original price by your rebate decimal.
$\Rightarrow Original{\text{ }}price{\text{ }}{\rm X}{\text{ }}0.2{\text{ }} = {\text{ }}Rebate$
Substitute the value of the original price and find the rebate.
$\Rightarrow Rebate = 18000{\text{ }}{\rm X}{\text{ }}0.2{\text{ }} = {\text{ 3600}}$
Using the above method reversely we will find the rebate percentage for Rs. 2700 rebate given on T.V.
$\Rightarrow Original{\text{ }}price{\text{ }}{\rm X}{\text{ }}Rebate\;Decimal{\text{ }} = {\text{ }}Rebate$
Substitute the value of the original price and find the rebate decimal.
$\Rightarrow Rebate\;Decimal{\text{ }} = {\text{ }}\dfrac{{{\text{2700}}}}{{18000}} = 0.15$
Multiplying the rebate decimal with 100 find the rebate percentage.
So, rebate percentage = 15% when Rs. 2700 rebate given on T.V.
Initially he was giving 20% discount and now with Rs. 2700 it is 15% discount.
When we subtract both the amount calculated
= 3600 – 2700 = 900
So, the amount of profit he made is Rs. 900.

So, the correct answer is “Option C”.

Note: The gain or loss is always reckoned on the cost price. The initial rebate will be reduced from the original price which will become our cost price. Then the second rebate will be deducted from our original price which will become our selling price.
In calculating profit percent and loss percent, sometimes after purchasing an article, we have to pay some more money for things like transportation, repairing charges, local taxes, these extra expenses are called overheads. For calculating the total cost price, we add overheads to the purchase price or cost price.