A streaming service charges ₹150 per month. If you buy an annual plan (12 months) with a 15% discount, what is your total savings…

Question

A streaming service charges ₹150 per month. If you buy an annual plan (12 months) with a 15% discount, what is your total savings (in ₹) compared to paying monthly for a year?

1. A. 180
2. B. 300
3. C. 240
4. D. 270 (Correct answer)

Correct Answer

Option D — 270

Detailed Solution & Explanation

The correct answer is 270.

Shortcut Trick

• The saving is the discount, so there is no need to compute the annual price at all.
• Yearly cost at the monthly rate $= 150 \times 12 = ₹1{,}800$.
• Saving $= 15\%$ of $1800 = \textbf{₹270}$.

Alternate Method

• Paying monthly for a year: $150 \times 12 = ₹1{,}800$
• Annual plan after 15% discount: $1800 \times 0.85 = ₹1{,}530$
• Saving $= 1800 - 1530 = \textbf{₹270}$

Additional Information

• Recognising that "saving" and "discount" are the same quantity removes an entire step. Candidates lose time computing the discounted price and then subtracting, when the discount was the answer all along.
• The trap options are built from plausible near-misses: ₹180 is 10% of 1800, ₹240 is 15% of 1600, ₹300 is one-sixth. Each corresponds to a specific slip.
• As a multiplier, the customer pays 0.85 of the original and saves 0.15 of it — the two always sum to 1, which is a quick self-check.