Question

James buys a chair 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 chair is

• A. Rs. 1230
• B. Rs. 1240
• C. Rs. 1320
• D. Rs. 1460

Answer 1

The correct option is C

Rs. 1320

On 20% discount, the new price will be 0.8 $\times$ original price

On 10% successive discount, price will be 0.9 $\times$ New price = 0.9 $\times$ 0.8 $\times$ original price

Finally, James 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

Ultimately he sold it @20% profit.

20% profit means 100% + 20% = 120%

=1.2 times the investment (cost price).

=1.2 $\times$ [(0.72 $\times$ original price) + Rs.20]

=1.2 $\times$ [(0.72 $\times$ 1500) + Rs.20]

=1.2 [1080+20]

=1.2 [1100]

=Rs.1320