Question
A shopkeeper marks up the price of an article by 50%
above its cost price. During a sale, he offers two successive discounts of 20% and 10% on the marked price and still makes a profit of Rs 72. What is the cost price of the article?Solution
ATQ, Let the cost price be C. Marked price = 1.5C. After 20% discount: price = 1.5C × 0.8 = 1.2C. After further 10% discount: price = 1.2C × 0.9 = 1.08C. Profit = 1.08C − C = 0.08C = 72 ⇒ C = 72 / 0.08 = 900.
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