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Question
An article listed at Rs.800 is sold at successive discounts of 25% and 15%. The buyer desires to sell it off at a profit of 20% after allowing a 10% discount. What would be his list price ?
Options:
A .  Rs.680
B .  Rs.640
C .  Rs.620
D .  Rs.600
Answer: Option A
Answer: (a)Using Rule 5,Effective discount= 25 + 15 - ${25 × 15}/100$= 40 - 3.75 = 36.25 %CP for buyer= (100 - 36.25) % of 800= ${63.75 × 800}/100$ = Rs.510To gain 20%,SP = Rs.$({120 × 510}/100)$ = Rs.612Let the list price be Rs.x.90% of x = Rs.612${90x}/100$ = 612$x = 61200/90$ = Rs.680

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