If a discount of 25% on the marked price of an item results in its selling price being Rs. 36, at what price should the item be sold in order to allow a discount of 20%?

ARs. 37.8

BRs. 38.0

CRs. 38.4 ✓ Correct

DRs. 39.4

Correct answer: (C) Rs. 38.4

Explanation

The item must be sold for Rs. 38.4 when a 20% discount is allowed.

A 25% discount leaves 75% of the marked price as selling price.

So 0.75 x MP = 36, giving MP = 36 / 0.75 = 48.

A 20% discount leaves 80% of the marked price.

SP = 0.80 x 48 = 38.4.

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