A man bought a car for Rs. 442,500 at a 15% discount. How much did he save?
A. Rs. 66,375
B. Rs. 50,625
C. Rs. 61,875
D. Rs. 52,500
Understanding discounts and calculating the savings on a purchase is an essential skill in everyday life. Let’s delve into a scenario where a man bought a car at a discounted price and explore how much he managed to save.
Car price before discount = Rs. 442,500
Discount rate = 15%
Calculating the Discount Amount
Step 1: To find out how much discount the man received, we need to calculate the discount amount. The formula to calculate the discount amount is as follows:
Discount Amount = (Discount Rate) × (Car Price before Discount)
Step 2: Plug in the values:
Discount Amount = 0.15 × 442,500 = Rs. 66,375
The discount amount calculated above is the exact amount the man saved on the purchase of the car. Hence, the amount saved is Rs. 66,375.
In this scenario, the man managed to save Rs. 66,375 on the purchase of the car due to the 15% discount offered. Understanding how to calculate discounts and savings not only helps individuals make informed purchasing decisions but also enhances their financial literacy.
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