Question

A merchant marked an article such that its price was 25% above its cost price. He offered two consecutive discounts of 10% and 20% to a buyer. If he incurred a loss of ₹400, what was the marked price of the article?

• A. ₹5000
• B. ₹2000
• C. ₹2500
• D. ₹1080

Answer 1

Answer:

A. ₹5000

Let cost price be (CP = x).

Step 1: Marked Price

Marked 25% above CP:
MP = 1.25x

Step 2: Selling Price after discounts

Two successive discounts of 10% and 20%:

$SP = MP \times 0.9 \times 0.8 = 1.25x \times 0.72 = 0.9x$

Step 3: Loss

$\text{Loss} = CP - SP = x - 0.9x = 0.1x$

Given loss = ₹400:

0.1x = 400
x = 4000

Step 4: Marked Price

$MP = 1.25x = 1.25 \times 4000 = 5000$

Final Answer:

Marked Price = ₹5,000