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      Question

      The price of an item is increased by 20% and then

      reduced by 10%. If after these changes the price becomes Rs. 540, then what was the original price?
      A Rs.450 Correct Answer Incorrect Answer
      B Rs.500 Correct Answer Incorrect Answer
      C Rs.300 Correct Answer Incorrect Answer
      D Rs.200 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      ATQ, Let original price = x After 20% increase = 1.2x After 10% reduction = 1.2x x 0.9 = 1.08x Given, 1.08x = 540 x = 500 Hence, the correct answer is Rs. 500.

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