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Discussion

  1. The price of an article reduces to 576 after two successive discounts. The markup is 80% above the cost price of Rs. 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?
    1. 259.2%
    2. 59.2%
    3. 159.2%
    4. can’t be determined
  1. Correct Option: C

    Cost price (CP) = 500
    Selling Price (SP) = 576
    Markup 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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