Question

A dealer buys a table listed at Rs.1,500 and gets successive discounts of $20\%$ and $10\%$. He spends Rs.20 on transportation and sells it at a profit of $20\%$. The selling price of the table is

• A. Rs. 1,320
• B. Rs. 1,350
• C. Rs. 1,360
• D. Rs. 1,380

Answer 1

$20\%$ discount $=0.8\times$ original price (this is our new price) $10\%$ successive discount $=0.9\times$ New price $=0.9\times 0.8\times$ original price. Finally dealer had to pay: $0.72\times$ original price.
Then he invested Rs.20 on transport, so his total investment (cost price) is ($0.72\times$ original price) + Rs.20
And ultimately he sold it at $20\%$ profit. $20\%$ profit means $100\%+20\%=120\%=1.2$ times the investment (cost price). $=1.2\times \left[\right(0.72\times originalprice)+Rs.20]$.
= $1.2\times 1100$
=1320