Two successive discounts of 20% and 25% on the marked price of an article are equal to a single discount of ₹ 250. If the marked price of the article is 25% above the cost price, the cost price (in ₹) of the article is:
Answer & explanation
Correct answer: option 4
If two discounts of x and y be given then the successive discount will be equal to = X + y - \(\frac{x × y}{100}\)
Two successive discounts of 20% and 25% = 20 + 25 - \(\frac{20 × 25}{100}\) = 40%
If 40% of MP = ₹ 250
Then, 100% of MP = 625
It is given that the marked price is 25% more than the cost price
125% of CP = 625
100% of CP = 500