Multiple choice

An almirah is listed at Rs 1000. A retailer buys it with two successive discounts of 10% and 20% for cash. The other expenses are 10% of the cost of the almirah. At what price should he sell to earn a profit of 15%?

  1. Rs $910.80$
  2. Rs $900.50$
  3. Rs $910.50$
  4. Rs $980.50$
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A Correct answer
Explanation

List price = 1000. After 10% and 20% discounts: 1000 * 0.9 * 0.8 = 720. Expenses = 10% of 720 = 72. Total cost = 720 + 72 = 792. To get 15% profit, sell at 792 * 1.15 = 910.80.

AI explanation

The retailer's cost price before expenses is 1000 multiplied by 0.9 and then by 0.8, which equals 720 rupees. Adding other expenses of 10% brings the total effective cost to 720 plus 72, equaling 792 rupees. To earn a 15% profit, the selling price must be 115% of 792. Calculating 1.15 times 792 gives a selling price of 910.80 rupees.

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