Multiple choice

A seller marks up an article 160% above of its cost price. After it he allows two successive discounts of 20% and 25%. If marked price of article is Rs 520 then find his profit.

  1. Rs 120

  2. Rs 112

  3. Rs 140

  4. Rs 124
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Marked price = 520. Cost price = 520 / 2.6 = 200. After discounts of 20% and 25%, selling price = 520 * 0.8 * 0.75 = 312. Profit = 312 - 200 = 112.

AI explanation

The marked price is 520, which is 260% of the cost price because of the 160% markup. Solving 2.6 times Cost Price equals 520 gives a cost price of 200. The final selling price after successive discounts of 20% and 25% is 520 times 0.8 times 0.75, which equals 312. The profit is the selling price minus the cost price, calculated as 312 minus 200, giving Rs 112.

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