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CAPF AC 2021 Q95: General Mental Ability – Quantitative Aptitude

CAPF AC 2021, Paper I (General Ability and Intelligence) · General Mental Ability

A shopkeeper gives two consecutive discounts of 10% and 5% respectively on his items. He then adds 20% GST on his items. If an item has marked price ₹2,000, how much more or less of the actual price of the item a customer has to pay?
  1. (a) 2.6% less
  2. (b) 2.6% more
  3. (c) Same price
  4. (d) 5.2% more

Answer: (b) 2.6% more

Explanation

Two discounts and then GST

Given: a shopkeeper gives two consecutive discounts of 10% and 5%, then adds 20% GST; the marked price is ₹2,000; find how much more or less than the marked price the customer pays.

How to think: apply each change one after another on the new price.

Percentages on changing bases must be multiplied, never added.

StepWorkingPrice
Marked priceGiven₹2,000
After 10% discount2,000 × 0.90₹1,800
After 5% discount1,800 × 0.95₹1,710
After 20% GST1,710 × 1.20₹2,052

Compare with the marked price: 2,052 − 2,000 = ₹52 more.

52 out of 2,000 is 2.6%.

In one line: 0.90 × 0.95 × 1.20 = 1.026, which is 2.6% more.

Answer: (b) 2.6% more.

Why each option is right or wrong

Key point

Successive percentage changes multiply: final = original × (1 − d1)(1 − d2)(1 + tax). Two discounts of 10% and 5% equal a single discount of 14.5%, not 15%.

Remember

Successive percentages multiply: 0.9 × 0.95 × 1.2 = 1.026.

Common mistakes

Exam tip

Educated guess: discounts total a bit under 15% and GST adds 20% on a smaller base, so the net result is a small increase. Only 2.6% more fits; 5.2% is too large.

Sources

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