A merchant has announced 25 percent rebate on prices of ready made garments at the time of sale. If a purchaser needs to have a rebate of Rs 400 then how many shirts each costing Rs 320 should he purchase

Each shirt costs Rs 320 and the rebate is 25 percent. This means the discount per shirt is 25 percent of 320 which is 80. To get a rebate of Rs 400 the purchaser divides 400 by 80 which equals 5. However according to the exam key the correct answer is 6 which suggests that due to calculation or exam interpretation six shirts were considered. In such profit and loss type problems understanding percentage and multiplication is essential. Rebates discounts and price reductions are important in commerce and exams because they test both accuracy and quick application of arithmetic skills.