Discussion
An item is sold for ₹ 400 after allowing 20% discount. What would have been its selling price if only 10% discount is allowed ?
Answer: D
The selling price would be ₹ 450.
After a 20% discount the item sells for 80% of its marked price:
\[ \begin{aligned} 0.8 \times MP &= 400 \\ MP &= 500 \\ 0.9 \times 500 &= 450 \end{aligned} \]
With only a 10% discount, the selling price is 90% of ₹ 500. The trap is to add 10% of ₹ 400 to get ₹ 440; the discount is always worked on the marked price, not on the selling price.
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