A high-end watch is initially marked up by 50% above its cost price. During a sale, it is offered at a discount of 20% on its marked price. However a special customer receives an additional discount of y% on the discounted price, bringing the final selling price to ₹4320. If the shopkeeper still makes a profit of 8% on the cost price after all discounts, what was the original cost price of the watch and the value of y?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. CP = ₹4000, y = 10%.
Let Cost Price = x
Profit = 8%
Final SP = 1.08x
Given final SP = ₹4320
⇒ 1.08x = ₹4320
⇒ x = ₹4000 (Cost Price)
Marked Price = 50% above CP
MP = 1.5 × 4000 = ₹6000
After 20% discount:
SP1 = 6000 × 0.8 = ₹4800
After extra discount y%:
⇒ 4800(1 − ) = 4320
⇒ 1 − = = 0.9
⇒ = 0.1
⇒ y = 10%
Cost Price = ₹4000, y = 10%