Difficulty: Easy
Correct Answer: 40 : 21
Explanation:
Introduction / Context:
This question concerns successive discounts on a marked price and asks for the ratio of the original marked price to the final selling price. Successive discounts do not add directly as percentages; instead, each discount applies on the reduced price. This is a common profit and loss concept in aptitude exams.
Given Data / Assumptions:
Concept / Approach:
We assume a convenient marked price, typically 100 units, to make percentage calculations easy. We then apply the first discount to find the new price and then apply the second discount on that reduced value. The resulting price is the final selling price. Then we express Marked Price : Selling Price as a simplified ratio.
Step-by-Step Solution:
Verification / Alternative check:
We can compute the combined discount factor directly. Price factor after first discount = 0.75. Price factor after second discount = 0.70. Total factor = 0.75 * 0.70 = 0.525. So, SP = 0.525 * MP. Therefore, MP/SP = 1 / 0.525 ≈ 1.9047, which equals 40/21 ≈ 1.9047. This confirms the ratio 40 : 21.
Why Other Options Are Wrong:
Common Pitfalls:
One common mistake is to simply add the discounts (25% + 30% = 55%) and treat it as a single discount, which is incorrect because the second discount applies on a reduced price, not the original marked price. Another mistake is to mis-handle decimal calculations when computing 30% of 75. Working carefully or using fractions avoids these problems.
Final Answer:
The ratio of marked price to selling price is 40 : 21.
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