Two successive discounts of 20% and 30% are given while selling an item. What is the ratio of the marked price to the selling price of the item?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 25 : 14
Let's assume the marked price of the item to be M.
The first discount of 20% means that the selling price will be 80% of the marked price:
Selling price after first discount = 0.8M
The second discount of 30% is given on the selling price after the first discount. Therefore, the final selling price will be 70% of the selling price after the first discount:
Selling price after second discount = 0.7 x 0.8M = 0.56M
So, the ratio of the marked price to the selling price is:
M/0.56M = 1/0.56 = 25/14
Therefore, the required ratio of the marked price to the selling price is 25 : 14.