Question

The price of an article is raised by 30% and then two successive discounts of 10% each are allowed. Ultimately the price of the article is

• A. Increased by 10%
• B. Increased by 5.3%
• C. Decreased by 3%
• D. Decreased by 5.3%

Answer 1

The correct option is B Increased by 5.3%

Let the original cost of the article be Rs.$x$

Raising it by 30% M.P. $=x\times \frac{130}{100}=Rs.\frac{13x}{10}$

After allowing two discounts each of 10% the price of the article $=\frac{13x}{10}\times \frac{90}{100}\times \frac{90}{100}=Rs.\frac{1053x}{1000}$

Per cent increase in the cost of the article $=\frac{\left(\frac{1053x}{1000}\right)}{x}\times 100=\frac{53x}{1000x}\times 100=5.3\%$