Multiple choice

A shopkeeper marks an item 50% above cost price and offers two successive discounts of 20% and 10%. If the final selling price is Rs. 432, find the cost price.

  1. Rs. 400

  2. Rs. 420

  3. Rs. 450

  4. Rs. 460
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100. Marked Price = 150. After 20% discount, price = 150 * 0.8 = 120. After 10% discount, price = 120 * 0.9 = 108. If 108 units = 432, then 1 unit = 4. CP = 100 * 4 = 400.

AI explanation

Let the cost price be CP. The marked price is 1.5 times CP. Applying successive discounts of 20% and 10% means the final selling price is 1.5 x 0.8 x 0.9 x CP. This simplifies to 1.08 x CP, which is given as 432. Solving for CP gives 432 / 1.08 = 400.

Keep practicing — related questions