Question
An item's price is set 25% higher than its cost price.
After applying two consecutive discounts of 20% and 25%, it is sold for Rs. 1,500. Calculate the original cost price of the item.Solution
Marked price of the article = 1500/(0.75 Ă 0.80) = Rs. 2,500 Cost price of the article = 2500/1.25 = Rs. 2,000
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