Question
Article ‘P’, if sold at a profit of 20% earns a
profit of Rs. 500. If article ‘P’ is marked 40% above its cost price and then sold after offering two successive discounts of 20% and Rs. x, respectively then what would be the value of ‘x’ such that there is neither profit nor loss in the transaction?Solution
Let the cost price of article ‘P’ = Rs. 100y Then, according to the question, 20y = 500 Or, y = (500/20) = 25 So, cost price of article = Rs. 2500 Marked price of the article = 2500 × 1.4 = 3500 Price after 1st discount of 20% = 3500 × 0.8 = 2800 So, further discount be given = 2800 – 2500 = Rs. 300 Or, x = 300
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