A book publisher offers a novel to a bookstore at a 30% discount on the cover price. However, they charge an additional 5% on the discounted price for shipping. The bookstore sells the novel for ₹1620 more, earning a profit of 40%. What was the original cover price of the novel?
- (a)₹5,510.20
- (b)₹19,254.62
- (c)₹18,181.82
- (d)₹20,654.67
Answer
Why
Correct — A. Let the cover price be C and build the bookstore's cost.
After 30% off: 0.70C
Plus 5% shipping: 0.70C × 1.05 = 0.735C
The ₹1620 is the profit, 40% of that cost:
0.40 × 0.735C = 0.294C = 1620
C = 1620 ÷ 0.294 ≈ ₹5,510.20 → option (a)
Why the others are wrong
- (b)₹19,254.62 — ₹19,254.62 puts the bookstore's cost at about ₹14,152.15. Forty per cent of that is about ₹5,660.86 of profit, three and a half times the ₹1620 the question gives.
- (c)₹18,181.82 — ₹18,181.82 gives a cost of about ₹13,363.64 and a 40% profit of about ₹5,345.46. The profit must be ₹1620, so the cover price must be far lower.
- (d)₹20,654.67 — ₹20,654.67 gives a cost of about ₹15,181.18 and a 40% profit of about ₹6,072.47, about 3.75 times the stated ₹1620.
Concept
Successive percentage changes multiply. A 30% discount multiplies the price by 0.70, and a 5% charge on the discounted price multiplies it by 1.05. Together they give 0.735, a net cut of 26.5%, not 25%.
Profit percentage is taken on the buyer's cost, here the bookstore's 0.735C. A 40% profit is therefore 0.294C, and setting that equal to ₹1620 fixes C.
The phrase sells the novel for ₹1620 more does not say more than what. The key reads it as ₹1620 above the bookstore's cost, so ₹1620 is the profit.
Reading it as ₹1620 above the cover price gives 1.029C = C + 1620, so C ≈ ₹55,862, which is not among the options.
Key facts
- A 30% discount followed by a 5% charge on the discounted price multiplies the price by 0.70 × 1.05 = 0.735.
- A 40% profit means profit = 0.4 × cost.
- Check: cost = 0.735 × 5,510.20 ≈ ₹4,050, and 40% of ₹4,050 is ₹1,620.
Study next
Common traps
- Netting the changes as 30% − 5% = 25% off: 1620 ÷ 0.30 = ₹5,400, not an option.
- Leaving out the shipping charge: 1620 ÷ 0.28 ≈ ₹5,785.71.
- Stopping at 1620 ÷ 0.40 = ₹4,050, which is the bookstore's cost, not the cover price.
Multiplying successive percentage factors also decides 12 Sep 2025, 09:00, Quant Q.14: an 80% mark-up and discounts of 25% and 10% give 1.8 × 0.75 × 0.9 = 1.215, so a ₹15,552 selling price means a ₹12,800 cost.
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