Question

The price of an article reduces to 576 after two successive, discounts. The markup is 80% above the cost price Rs. 500. What is the new profit percentage if instead of two successive discounts the markup price was further increased successively two times by the same percentage?

• A. 259.2%
• B. 59.2%
• C. 159.2%
• D. can't be determined

Answer 1

The correct option is C 159.2%

$\begin{array}{ccc}CP& SP& MP\\ 500& 576& 900\end{array}$
Again $SP=MP\left[{(1-\frac{r}{100})}^2\right]$[r$\to$ rate of discount in %]
$\Rightarrow 576=900{(1-\frac{r}{100})}^2\Rightarrow \frac{24}{30}=(1-\frac{r}{100})\Rightarrow r=20\%$
Again, new $SP=MP{(1+\frac{r}{100})}^2=900{(1+\frac{20}{100})}^2=1296$
New, profit percentage $=\frac{SP-CP}{CP}\times 100=\frac{1296-500}{500}\times 100=159.2\%$