Multiple choice

A shopkeeper offered two successive discounts of 10% on a product and still made profit of Rs. 225. If he earned profit of 12.5%, what was the marked price?

  1. Rs. 2250

  2. Rs. 2500

  3. Rs. 2350

  4. Rs. 2025

  5. Rs. 1800
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let MP be x. SP = x * 0.9 * 0.9 = 0.81x. Profit = 12.5% of CP. SP = 1.125 * CP. Also, SP = CP + 225. 1.125 * CP = CP + 225 => 0.125 * CP = 225 => CP = 1800. SP = 1800 + 225 = 2025. 0.81x = 2025 => x = 2500.

AI explanation

The profit of Rs. 225 represents a 12.5 percent gain, so the cost price is calculated as 225 divided by 0.125, which equals Rs. 1800. The selling price is the cost price plus the profit, giving 1800 plus 225, which equals Rs. 2025. After two successive discounts of 10 percent, the selling price equals 90 percent of 90 percent of the marked price, or 0.81 times the marked price. Setting 0.81 times the marked price equal to 2025 gives a marked price of Rs. 2500.

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