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General Questions Question 24 – answer, explanation & discussion

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Question 24 Back to Exercise
The price of an article reduces to 576 after two successive discounts. The markup is 80% above the cost price of ₹ 500.What is the new profit percentage if instead of two successive discount the markup price was further increased successively two times by the same percentage?

  • A 259.2%
  • B 59.2%
  • C 159.2% Correct
  • D Can’t be determined
Correct Answer: Option C

Cost price (CP) = 500
Selling Price (SP) = 576
Mark-up price (MP) = 900

Again SP = MP [( 1 - r/100)2] [r - rate of discount in %]

⇒ 576 = 900 (1 - r/100)2
⇒ 24/30 = (1 - r/100)
∴ r = 20%

Again, new SP = MP (1 + r/100)2

= 900 (1 + 20/100)2

= 1296

New, profit percentage = [(SP - CP)/CP] X 100

= [( 1296 - 500 ) / 500 ] x 100 = 159.2%

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