CAT Exam Model Paper 2 with solutions for free online practice

Question : 89 of 100

Marks: +1, -0

The price of an article reduces to 576 after two successive discounts. The markup is 80% above the cost price of ₹ 500. What is the new profit percentage if instead of two successive discounts the markup price was further increased successively two times by the same percentage?

259.2%
59.2%
159.2%
can’t be determined

Validate

Solution:

(c)

\table \CP, \SP, \MP;500 ,576 ,900

Again

{ \SP } = { \MP } [ ( 1 - { r } /{ 100 } ) ^ { 2 } ]

[r→ rate of discount in %]

⇒ 576 = 900 ( 1 - { r }/ { 100 }) ^ { 2 }

⇒ { 24 } /{ 30 } = ( 1 - { r }/ { 100 } ) ⇒r = 20 \%

Again, new SP = MP

( 1 + { r }/ { 100 } ) ^ { 2 } = 900 ( 1 + { 20 }/ { 100 } ) ^ { 2 } = 1296

New, profit percentage

= { \S \P - \C \P }/ { \C \P } ×100

= { 1296 - 500 }/ { 500 } × 100 = 159.2 \%

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