Subject: General Aptitude · Chapter: Profit and Loss · Exam: · Marks: · Difficulty:
Two stores A and B mark the price of an item identically. A allows 3 successive discounts of 10% each. B allows 10% discount on the list price and a subsequent discount of 19%. Under the circumstances, which of the following is true?
(a)The price of the article is cheaper at A.
(b)The price of the article is cheaper at B.
(c)The price of the article is same at A and B.
(d)The price cannot be determined.
Answer
Answer (as printed): C
Explanation
Let the M.P. of the item at each of the stores A and B be ₹ 100. Final price at A = 90\% of 90\% of 90\% of ₹ 100 $$=₹\left(\frac{90}{100} \times \frac{90}{100} \times \frac{90}{100} \times 100\right)=₹ 72.90 .$$ Final price at B = 81\% of 90\% of ₹ 100 $$=₹\left(\frac{81}{100} \times \frac{90}{100} \times 100\right)=₹ 72.90 .$$ Hence, the price of the article is same at A and B.
Explanation as extracted from the printed page; notation may be imperfect.