After offering two successive discounts of 10% each, the seller earns 10% profit. The cost price is what per cent (rounded off to 2 decimal places) of the tag price?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 73.64%.
Let’s Marked Price (Tag Price) = ₹100
Price after 1st discount = 100 − 10% of 100 = 100 − 10 = ₹90
Price after 2nd discount = 90 − 10% of 90 = 90 − 9 = ₹81
So, Selling Price (SP) = ₹81
The seller earns a 10% profit
So, SP = CP + 10% of CP = 1.10 × CP
⇒ 81 = 1.10 × CP
⇒ CP = 811.10 = 73.636...
Required percentage = (73.636.../100) × 100 = 73.64%