Question

The price of a bicycle is marked by a trader at 1000. He
sold the bicycle allowing successive discounts of 20%,
10% and 5%. Thus the trader gained 14% then the cost
price of bicycle (in rupees) is:

Answer 1

Given info : The price of a bicycle is marked by a trader at 1000. He sold the bicycle allowing successive discounts of 20%, 10% and 5%.

To find : if the trader gained 14 % then the cost price of bicycle is ..

solution : first find effective discount of these three successive discounts.

step 1 : effective discount of 20% and 10% = 20 + 10 - 20 × 10/100 = 30 - 2 = 28 %

step 2 : effective discount of 28 % and 5 % = 28 + 5 - 28 × 5/100 = 33 - 1.4 = 31.6 %

now marked price of bicycle is 1000 Rs.

discount is given 31.6 % and he gained 14 %

so cost price = marked price × (100 - discount)/100 × 100/(100 + gain)

= 1000 × (100 - 31.6)/100 × 100/(100 + 14)

= 1000 × 68.4/114

= 600

Therefore the cost price of bicycle is 600 Rs.