A departmental store marked up the price of an electronic gadget by 60% above its cost price. During a clearance sale, it offered two successive discounts of 25% and 10%. If the final selling price was Rs. 2,430, what was the cost price of the gadget?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs. 2,250.
Let CP = x
MP = 1.6x
SP after 25% and 10% discounts = 1.6x × 0.75 × 0.9 = 1.08x
1.08x = 2430
⇒ x = 2430/1.08 = 2250