Multiple choice

An article marked at Rs. $800$ is sold at successive discounts of $15\%$ and $25\%$. If the buyer desires to sell it off at a profit of $20\%$ after allowing a $10\%$ discount, then his marked price will be Rs. $680$.

  1. Both Assertion and Reason are correct and Reason is the correct explanation for Assertion

  2. Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion

  3. Assertion is correct but Reason is incorrect

  4. Both Assertion and Reason are incorrect
Reveal answer Fill a bubble to check yourself
A Correct answer
AI explanation

The buyer purchases the article at successive discounts of 15% and 25% on the marked price of Rs. 800, which calculates to 800 * 0.85 * 0.75 = Rs. 510. To earn a 20% profit on this cost, the target selling price becomes 510 * 1.20 = Rs. 612. If the buyer allows a 10% discount on his marked price, his marked price will be 612 / 0.90 = Rs. 680. Since this perfectly matches the assertion, both the assertion and reason are correct and interconnected. The result is that both the assertion and reason are correct and the reason is the correct explanation for the assertion.

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