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Madan, an electronic goods dealer, bought a DVD player at a discount of 40% on the list price. He then marked up the price by 125%. As there were no buyers, he offered a discount of 44 %. His customer had to pay a sales tax of 20% on this offer price. If his customer finally bought the DVD player for ₹4,320, what was the list price initially? (in ₹)

Question

Madan, an electronic goods dealer, bought a DVD player at a discount of 40% on the list price. He then marked up the price by 125%. As there were no buyers, he offered a discount of 44 %. His customer had to pay a sales tax of 20% on this offer price. If his customer finally bought the DVD player for ₹4,320, what was the list price initially? (in ₹)

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Solution

Let's solve this step by step:

Step 1: First, we need to find the price after the sales tax. The customer paid a total of ₹4,320, which includes the 20% sales tax. So, the price before the sales tax was added can be calculated as follows:

4320 / 1.20 = ₹3600

Step 2: Next, we need to find the price before the discount of 44%. This can be calculated as follows:

3600 / (1 - 0.44) = ₹6428.57

Step 3: Then, we need to find the price before the markup of 125%. This can be calculated as follows:

6428.57 / 2.25 = ₹2857.14

Step 4: Finally, we need to find the original list price before the discount of 40%. This can be calculated as follows:

2857.14 / (1 - 0.40) = ₹4761.90

So, the initial list price of the DVD player was approximately ₹4762.

This problem has been solved

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