A software developer sells a license for a new application to a reseller at a 20% discount. An installment and support fee of 15% is added to the discounted price. The reseller then sells the license for ₹7800 more, making a 25% profit. Determine the original marked price of the software license by the developer.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹33,913.04.
Let MP = M
SP = 0.8M
Reseller price = 0.8M × 1.15 = 0.92M
0.92M + 7800 = 1.25 × 0.92M
⇒ 7800 = 0.23M
⇒ M = 7800/0.23 ≈ 33913.04