Bholu conducts his business in the following manner: Every once in while he raises his prices by a certain percentage and a while later reduces his price by the same percentage. After one such up-down cycle of increasing and then decreasing his price by x %, the price of the commodity decreases by Rs 100. In the next cycle, he increases and decreases his price by (x/2)% and then sells the commodity for Rs 2376. What is the initial price of the commodity?
Answer with explanationAnswer: Option C
Let the initial price be P.
P ( 100 + x) (100-x) / 100 * 100 = P- 100
P*x*x /100 = 100 -(1)
(P – 100) (400 – x^2) / 400 = 2376 -(2)
Using 1 and 2,
P^2 – 2501 P + 2500 = 0
P= 2500 or 1
Since , P > 2376