Multiple choice

Rakesh bought a cycle for Rs. 800. and marked it up by 50% and gave a discount of 10%. A customer came in to buy the cycle and bargained with Rakesh for an additional discount of 20% on the already discounted price. What is the profit earned by Rakesh?

  1. Rs.180

  2. Rs.156

  3. Rs.64

  4. Rs. 28

  5. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cost price is 800. Marked price = 800 * 1.5 = 1200. After 10% discount, price = 1200 * 0.9 = 1080. After additional 20% discount, price = 1080 * 0.8 = 864. Profit = 864 - 800 = 64.

AI explanation

The cycle cost Rs. 800, and applying the 50% markup gives a marked price of Rs. 1200. Applying the successive discounts using the decimal multipliers 0.90 and 0.80 gives a final selling price of 1200 times 0.72, which is Rs. 864. The profit earned by Rakesh is the final selling price minus the cost price, equalling Rs. 864 - Rs. 800, which is Rs. 64.

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