Comparing two discount offers to infer labeled price and paid price Tarun buys a TV at 20% discount on the labeled price. Had he received a 25% discount instead, he would have saved Rs 500 more. At what price (amount actually paid) did he buy the TV?

Introduction / Context:
Two discount scenarios on the same label let us find the labeled price first, then compute the amount paid in the actual scenario. The key is that the difference between 25% and 20% discounts equals 5% of the label.

Given Data / Assumptions:

• Actual discount = 20% on label L.
• Hypothetical discount = 25% on L.
• Extra saving under 25% vs 20% = Rs 500.

Concept / Approach:
The extra saving equals (0.25L − 0.20L) = 0.05L. Solve for L, then compute the actual payment at 20% off: Paid = 0.80L.

Step-by-Step Solution:
0.05L = 500 ⇒ L = 10,000.Amount actually paid = 0.80 × 10,000 = Rs 8,000.

Verification / Alternative check:
At 25% off, payment = 7,500. Difference between 8,000 and 7,500 is 500, matching the statement.

Why Other Options Are Wrong:
7,500 is what he would pay under 25% (not actual); 10,000 and 12,000 are label or higher; 9,500 does not match 20% off.

Common Pitfalls:
Picking the labeled price instead of the amount paid, or mixing up the direction of the 5% difference.

Final Answer:
Rs 8,000