The list price of an AC is Rs. 20,000. The shopkeeper sold it by allowing a 4% discount and charged 5% sales tax. By mistake , while calculating the bill, he considered 5% discount and 4% sales tax. As a result, the customer must have paid ____.

Options

A. Rs. 200 less
B. Rs. 400 less
C. Rs. 400 more
D. Rs. 200 more

Answer

B

Explanation

List price = Rs. 20,000
Discount (in Rs.) `=(4)/(100)(20,000)=800`
Price after discount = Rs. 19,200
Sales tax (in Rs.) `=(5)/(100)(19,200)=960`
Amount to be paid (in Rs.) =19,200+960=20,160
Discount calculated (in Rs.) `=(5)/(100)(20,000)=1000`
Calculated price after discount =Rs. 19,000
Sales tax calculated (in Rs.) `=(4)/(100)(19,000)`
=760
Amount actually paid (in Rs.) =19,000+760=19,760
`therefore` The customer must have paid (20,160-17,760), i.e., Rs. 400 less.