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# An article costing Rs. 20 was marked 25% above the cost price.

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Intern
Joined: 11 Sep 2013
Posts: 7
An article costing Rs. 20 was marked 25% above the cost price.  [#permalink]

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Updated on: 30 Oct 2016, 10:45
3
00:00

Difficulty:

65% (hard)

Question Stats:

57% (03:01) correct 43% (03:10) wrong based on 45 sessions

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Quote:
An article costing Rs. 20 was marked 25% above the cost price. After two successive discounts of the same percentage, the customer now pays Rs. 20.25. What would be the percentage change in profit had the price been increased by the same percentage twice successively instead reducing it?

a) 3600%
b) 3200%
c) 2800%
d) 4000%
e) 3800%

Originally posted by Emdadul28 on 29 Oct 2016, 11:20.
Last edited by Emdadul28 on 30 Oct 2016, 10:45, edited 1 time in total.
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Joined: 05 Mar 2015
Posts: 1001
Re: An article costing Rs. 20 was marked 25% above the cost price.  [#permalink]

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30 Oct 2016, 09:45
4
Quote:
An article costing Rs. 20 was marked 25% above the cost price. After two successive discounts of the same percentage, the customer now pays Rs. 20.25. What would be the percentage change in profit had the price been increased by the same percentage twice successively instead reducing it?

a) 36000%
b) 32000%
c) 28000%
d) 40000%
e) 3800%

Ans should be 4000% not 40000%-------Emdadul28 plz confirm..

Mark up price=20+25%of 20=25
Let the discount be x%
after 2 discount--------->25(1-x/100)^2=20.25
sq rt both sides------->5(1-x/100)=4.5
thus x=10%

instead discount if he increases by 10% 2 times then new price=
25(1+10/100)^2----->30.25
So the net profit after discount by 10% 2 times-----> 20.25=20(1+x/100)--------->x=1.25%
net profit After increase in price by 10% 2 times------>30.25=20(1+x/100)---------->x=51.25%

thus profit change= (51.25-1.25)*100/1.25------->4000%

Ans D
Intern
Joined: 11 Sep 2013
Posts: 7
Re: An article costing Rs. 20 was marked 25% above the cost price.  [#permalink]

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30 Oct 2016, 10:50
rohit8865 wrote:
Quote:
An article costing Rs. 20 was marked 25% above the cost price. After two successive discounts of the same percentage, the customer now pays Rs. 20.25. What would be the percentage change in profit had the price been increased by the same percentage twice successively instead reducing it?

a) 36000%
b) 32000%
c) 28000%
d) 40000%
e) 3800%

Ans should be 4000% not 40000%------- plz confirm..

Mark up price=20+25%of 20=25
Let the discount be x%
after 2 discount--------->25(1-x/100)^2=20.25
sq rt both sides------->5(1-x/100)=4.5
thus x=10%

instead discount if he increases by 10% 2 times then new price=
25(1+10/100)^2----->30.25
So the net profit after discount by 10% 2 times-----> 20.25=20(1+x/100)--------->x=1.25%
net profit After increase in price by 10% 2 times------>30.25=20(1+x/100)---------->x=51.25%

thus profit change= (51.25-1.25)*100/1.25------->4000%

Ans D

SORRY Bro It actually 4000%. I did not noticed it. Your answer is right.
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Joined: 09 Sep 2013
Posts: 9862
Re: An article costing Rs. 20 was marked 25% above the cost price.  [#permalink]

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17 Jan 2019, 21:23
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: An article costing Rs. 20 was marked 25% above the cost price.   [#permalink] 17 Jan 2019, 21:23
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# An article costing Rs. 20 was marked 25% above the cost price.

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