A shopkeeper offers successive discounts of 20% and 10% on a bag and sells it for ₹864. What was the original marked price of the bag?
Show answer & explanation
Correct answer: B
Explanation
Given:
Two successive discounts = 20% and 10%
Selling price = ₹864
By the formula:
Selling price = Marked price × (1 − 20/100) × (1 − 10/100)
864 = M × 0.80 × 0.90
864 = M × 0.72
M = 864 / 0.72
M = ₹1200