Question
A shopkeeper initially marked up the price of an item by
50% above its cost. To make a sale, he offered two consecutive discounts: the first was 20%, and the second was m%. Unfortunately, this resulted in a 16% loss on the transaction. Calculate the value of 'm'.Solution
Let the cost price of the article be Rs. ‘x’ Marked price of the article = x × 1.5 = Rs. ‘1.5x’ Selling price of the article = x × 0.84 = Rs. ‘0.84x’ 1.5x × 0.8 × {1 – (m/100)} = 0.84x Or, 1 – (m/100) = (0.84x/1.2x) Or, 1 – (m/100) = 0.7 Or, (m/100) = 0.3 So, m = 30
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