Profit, Loss and Discount — Statement I-II Type Questions

Statement 1: Discount is always given on the cost price.

Statement 2: S.P. = Marked price × $\left(1 + \dfrac{d}{100}\right)$, where d is discount %.

Which of the following options is correct?

1. Both the statements are true.

2. Both the statements are false.

3. Statement 1 is true, and statement 2 is false.

4. Statement 1 is false, and statement 2 is true.

Answer

We know that,

Discount is always given on the marked price of an article, not on the cost price.

So, Statement 1 is false.

Since discount is subtracted from the marked price, the correct relation is S.P. = Marked price × $\left(1 - \dfrac{d}{100}\right)$, where d is the discount %.

So, Statement 2 is false.

Hence, option 2 is the correct option.