Multiple choice

A dealer marks an article 50% above the cost price and sells it to a customer allowing two successive discounts of 20% and 15% on the marked price. if he gains Rs. 400 on the deal then the cost price of the article is?

  1. 15000

  2. 30000

  3. 25000

  4. 20000

  5. None
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = 100x. MP = 150x. Selling Price = 150x * 0.8 * 0.85 = 102x. Gain = 102x - 100x = 2x. 2x = 400, so x = 200. CP = 100 * 200 = 20000.

AI explanation

Let the cost price be CP; the marked price is then 1.5CP. The two successive discounts of 20% and 15% result in a single discount equivalent to (20 + 15 - (20*15)/100) = 17%. The selling price becomes 1.5CP * 0.83 = 1.245CP. Since the gain is Rs. 400, 1.245CP - CP = 0.245CP = 400. Therefore, CP = 400 / 0.245 = 20000.

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