Successive price reductions

CMAT 2018 · Quantitative Techniques & Data Interpretation · Easy · Percentages

An electric appliance is priced at Rs. 600 initially. Because of market recession, price was successively reduced three times, each time by 10% of the price after the earlier reduction. What is the current price?

  1. A.

    Rs. 420

  2. B.

    Rs. 437.40

  3. C.

    Rs. 444.30

  4. D.

    Rs. 478

Answer

B

Explanation

Current price = 600×(1−0.10)3=600×(0.9)3=600×0.729=Rs. 437.40600 \times (1 - 0.10)^3 = 600 \times (0.9)^3 = 600 \times 0.729 = \text{Rs. 437.40}.

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