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      Question

      A trader sets the price of an item 25% higher than its

      cost price. He then offers two successive discounts of 20% and 10%, and finally sells it for Rs. 432. What was the original cost price?
      A Rs.500 Correct Answer Incorrect Answer
      B Rs.480 Correct Answer Incorrect Answer
      C Rs.400 Correct Answer Incorrect Answer
      D Rs.665 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      ATQ,

      Let the cost price be Rs. x Marked price = 1.25x Selling price = 1.25x × 0.8 × 0.9 = 0.9x Given, 0.9x = 432 x = Rs. 480

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