An article is sold for ₹799.50 after allowing two successive discounts of 18% and 22% on its marked price. The cost price of the article is ₹1,000. If it is sold at the marked price, then the gain is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹250.
Final selling price (after two discounts) = ₹799.50
Two successive discounts = 18% and 22%
Cost price (CP) = ₹1,000
Net Discount = 1 - (1 - d1)(1 - d2)
d1 = 18% = 0.18 , d2 = 22% = 0.22
Net Discount Factor = ( 1 − 0 .18 ) ( 1 − 0.22 ) = 0.82 × 0.78 = 0.6396
Selling Price = MP × 0.6396
⇒ 799.50 = MP × 0.6396⇒ MP =
Cost Price = ₹1,000
So gain = ₹1,250 − ₹1,000 = ₹250