Question

A shopkeeper sells an item for ₹940.8 after giving two successive discounts of 84% and 44% on its marked price. Had he not given any discount, he would have earned a profit of 25%. What is the cost price (in ₹) of the item?

• A. 8363
• B. 8441
• C. 8404
• D. 8400

Answer 1

Answer:

D. 8400

Let's solve this problem step-by-step:

1. Calculate the Equivalent Discount:

• First discount: 84%

• Second discount: 44%

• Let the marked price be "MP".

• After the first discount, the price is MP (1 - 0.84) = MP 0.16.

• After the second discount, the selling price is (MP 0.16) (1 - 0.44) = MP 0.16 0.56.

• The final selling price is given as ₹940.8.

• Therefore, MP 0.16 0.56 = 940.8.

• MP * 0.0896 = 940.8

• MP = 940.8 / 0.0896 = 10500

2. Calculate the Cost Price:

• If no discount was given, the selling price would have been the marked price, which is ₹10500.

• This would have resulted in a 25% profit.

• Let the cost price be "CP".

• Selling price = CP + 0.25 CP = 1.25 CP

• 10500 = 1.25 * CP

• CP = 10500 / 1.25 = 8400

Therefore, the cost price of the item is ₹8400.