A machine making cost is Tk 25,000, sold with two successive discounts of 25% and 20%. An additional discount of 10% is offered for cash payment. What is the total loss in the selling price of the machine at cash payment?

Question: A machine making cost is Tk 25,000, sold with two successive discounts of 25% and 20%. An additional discount of 10% is offered for cash payment. What is the total loss in the selling price of the machine at cash payment?

Solution:
Making price = 25000 Tk
Selling Price after first Discount of 25% = 25000 - 25% of 25000
= 25000 - {(25/100) × 25000}
= 18750 Tk

The selling price after the second Discount of 20% = 18750 - 20% of 18750
= 18750 - {(20/100) × 18750
= 15000 Tk

∴ The final selling price at cash = 15000 - 10% of 15000
= 15000 - {(10/100) × 15000}
= 13500 Tk

Total loss = (25000 - 13500) = 11500 Tk