Question
A shopkeeper sets the marked price of an item at 50%
higher than its cost price. He then offers two successive discounts of 20% and m% on the marked price, resulting in an overall loss of 16% on the transaction. What is the value of m ?Solution
Let the cost price of the article be Rs. 'x' Marked price of the article = x X 1.5 = Rs. '1.5x' Selling price of the article = x X 0.84 = Rs. '0.84x' 1.5x X 0.8 X {1 - (m/100) } = 0.84x Or, 1 - (m/100) = (0.84x/1.2x) Or, 1 - (m/100) = 0.7 Or, (m/100) = 0.3 So, m = 30
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