Two shopkeepers sell the same article at the same price for the same quantity. One gives $25\%$ discount; the other offers $25\%$ more quantity at the same price. From a customer's view, which is better?
"More quantity at same price" $\Rightarrow$ divide price by the quantity factor to get the effective price per unit.
cannot be determined
Deal 1: price becomes $75\%$ of original (effective price factor $0.75$).
Deal 2: quantity becomes $125\%$; effective price per unit $=\frac{1}{1.25}=0.80$ of original.
Since $0.75 < 0.80$, Deal 1 is better.
Instead of comparing the effective price factors algebraically, we can compare the two deals using a concrete numerical example, then check each option against it.
The numerical comparison confirms that discounting the price works out cheaper for the customer than the equivalent quantity bonus.
Hence, the correct answer is option A: 1st shopkeeper's deal.
A company has $50{,}000$ preferred shares with dividend $20\%$ and $20{,}000$ common shares; par value of each share is ₹ 10. The total profit is $₹ 1{,}80{,}000$, of which $₹ 30{,}000$ is kept in reserve and the rest distributed to shareholders. Find the dividend percent paid to common shareholders.
A man buys apples at a certain price per dozen and sells them at eight times that price per hundred. What is his gain or loss percent?
Population of Timbaktoo (2 years ago) is 125000. Due to natural calamities people started migrating. So, population decreased at the rate of 4% per annum. How many migrated from his town in past 2 years?
A country follows a progressive taxation system under which the income tax rates applicable varies for different slabs of income. Total tax is computed by calculating the tax for each slab and adding them up. The rates applicable are as follows :
Tax Rate Table Based on Annual Income
\[\begin{array}{|c|c|} \hline \textbf{Annual income} & \textbf{Tax rate} \\ \hline 0 - 50,000 & 0\% \\ \hline 50,001 - 60,000 & 10\% \\ \hline 60,001 - 1,50,000 & 20\% \\ \hline > 1,50,000 & 30\% \\ \hline \end{array}\]
If annual income is ₹ $1{,}70{,}000$, what is the total tax payable?