Two successive discounts of 20% and 25% on the marked price of an article are equal to a single discount of Rs 250. If the marked price of the article is 25% above the cost price, the cost price (in Rs) of the article is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 500
Let the marked price of the article be x.
Then, two successive discounts of 20% and 25% will be equal to
⇒20 + 25 - (20 × 25)/100 = 40%
Thus, 40% of x = 250
100% of x = 250 × (100/40) = 625
Marked price is 25% of Cost price, thus
125% of Cost price = 625
Cost Price = 625 × (100/125) = 500