Question

James buys a chair listed at ₹ 1,500 and gets successive discounts of 20% and 10%. He spends ₹ 20 on transportation and sells it at a profit of 20%. Find the selling price of the chair ?

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

Answer 1

The correct option is C

Rs. 1320

Marked price of the article = ₹ 1500 ; Successive discount $d_1$ = 10% and Successive discount $d_2$ = 20 %

Effective price shopkeeper pays for the article

= M.P. $\times \frac{100-d_1}{100}\times \frac{100-d_2}{100}$
= 1500 $\times \frac{100-10}{100}\times \frac{100-20}{100}$
= 2500 $\times \frac{90}{100}\times \frac{80}{100}$
= ₹ 1080

Amount spent on transportation = ₹ 20
$\therefore$ New price = 1080 + 20 = ₹ 1100
Profit = $1100\times \frac{20}{100}=₹220$
Selling price = 1100+ 220
= ₹ 1320