A company pays rent of Tk. 20000 per month for office space to its owner. But if the company pays the annual rent at the beginning of the year the owner gives a discount of 5% on the total annual rent. What is the annual amount the company pays to the owner after the discount?

Question: A company pays rent of Tk. 20000 per month for office space to its owner. But if the company pays the annual rent at the beginning of the year the owner gives a discount of 5% on the total annual rent. What is the annual amount the company pays to the owner after the discount?

Solution:
Total annual rent = Tk. (20000 × 12) = Tk. 240000
Discount = 5% of tk. 240000
= Tk. 12000
∴ Annual rent paid after discount = Tk. (240000 - 12000)
= Tk. 228000