If the cost of an article is ₹ P after two successive reductions of 20% and 25%, original price of the article was:
Answer & explanation
Correct answer: option 1
S.P. after 1st reduction of 20% = M.R.P. ×\(\frac{80}{100}\)
S.P. after 2nd reduction of 25% = M.R.P. ×\(\frac{80}{100}\) ×\(\frac{75}{100}\) = P
⇒ M.R.P. = P ×\(\frac{5}{4}\) ×\(\frac{4}{3}\)
⇒ M.R.P. = \(\frac{5}{3}\) P