Question

A shop offers a 20% discount on an item with a marked price of Rs. 500. What is the selling price?

• A. Rs. 350
• B. Rs. 400
• C. Rs. 450
• D. Rs. 480

Hint:

For discounts, calculate SP as (100 - \text{Discount%}) \times \text{Marked price} \div 100.

Answer 1

The Correct Option is B

The problem involves calculating the selling price of an item after a discount is applied. The item has a marked price of Rs. 500, and a 20% discount is offered.

To find the selling price, we must first calculate the discount amount:

Discount Amount = Marked Price × Discount Rate

Substitute the given values:

$\text{Discount Amount}=500\times \frac{20}{100}$

The fraction simplifies to:

$500\times 0.2=100$

Therefore, the discount amount is Rs. 100.

Now, subtract the discount amount from the marked price to find the selling price:

Selling Price = Marked Price - Discount Amount

Substitute the values:

$500-100=400$

Therefore, the selling price is Rs. 400, which matches the correct answer.