The price of an article is raised by 45% and then two successive discounts of 15% each are allowed. Ultimately the price of the article is _________.
Answer & explanation
Correct answer: option 2
Let the cost price of the artcle = 100
Markup = 45%
so the marked price of that article = 145
Discounts = 15% each for two
Selling price = 145 × \(\frac{85}{100}\) × \(\frac{85}{100}\) = 104.7625
So the percentage increased = 104.7625 - 100 = 4.7625%