The cost of manufacturing of a tape recorder is Rs. 1500. The manufacturer fixes the marked price 20% above the cost of manufacture and allows a discount in such a way as to get a profit of 8%. The rate of discount is = ?

Solution(By Examveda Team)

Cost price of tape recorder = Rs. 1500
Marked price of tape recorder
$$\eqalign{ & {\text{ = 120}}\% {\text{ of 1500}} \cr & = \frac{{120}}{{100}} \times 1500 \cr & {\text{ = Rs}}{\text{. }}1800 \cr} $$
Selling price of tape recorder
$$\eqalign{ & {\text{ = 108}}\% {\text{ of 1500}} \cr & = \frac{{108}}{{100}} \times 1500 \cr & {\text{ = Rs}}{\text{. }}1620 \cr & {\text{Rate of discount }} \cr & = \frac{{1800 - 1620}}{{1800}} \times 100\% \cr & = \frac{{180}}{{1800}} \times 100 \cr & = 10\% \cr} $$