A shirt bought for Rs. 270 is marked at 8% higher than the cost price and sold at 10% discount. What is the selling price (in Rs.) of the shirt?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 262.44
Two percentages are applied one after the other on different bases: the mark-up is taken on the cost price, and the discount is then taken on the marked price, not on the cost. So the two do not just add up to a 2% loss.
Marked price, 8% above the cost of Rs. 270: \(270\times1.08=291.60\)
Selling price, 10% below the marked price: \(291.60\times0.90=262.44\)