The cost price of an article is decreased by 10% and then increased by 20%. If the final price is ₹540, then the original cost price is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹500.
Let the cost price of the article be x.
According to the question,
x × (9/10) × (6/5) = 540
⇒ x = (540 × 10 × 5)/(9 × 6)
⇒ x = 500
Hecne the original price of the article is ₹500.