A shopkeeper offers 2.5% discount on cash purchases. What cash amount would Rohan pay for a cycle, the marked price of which is ₹ 650? (IGNOU, 2003)

### Concept & Simple Discount Discount is always calculated on the marked price. The final selling price is the marked price minus the discount amount. $$ \text{Selling Price} = \text{Marked Price} \times \left(1 - \frac{\text{Discount \%}}{100}\right) $$ ### Step-by-Step Solution * Given Marked Price (MP) of the cycle = ₹ 650. * Discount percentage offered = $2.5\%$. * Discount Amount = $2.5\%$ of MP = $\frac{2.5}{100} \times 650$. * Discount Amount = $\frac{25}{1000} \times 650 = \frac{1}{40} \times 650 = \frac{65}{4} = 16.25$. * Cash amount Rohan pays (Selling Price) = MP - Discount Amount. * Selling Price = $650 - 16.25 = 633.75$. ### Exam Strategy & Shortcut To find $2.5\%$ of $650$ quickly: $10\%$ is $65$. $5\%$ is $32.5$. $2.5\%$ is half of $32.5$, which is $16.25$. Subtracting $16.25$ from $650$ gives $633.75$. ### Common Pitfall A common mistake in manual calculation is misplacing the decimal point when dividing $65$ by $4$, resulting in $1.625$ or $162.5$. ### Final Answer Therefore, the correct answer is **₹ 633.75**.