A trader gives 12% additional discount on the discounted price, after giving an initial discount of 20% on the labeled price of an item. The final sale price of the item is Rs.704. Find out the labeled price?
Let the labeled price = $x$
SP = 704
Initial Discount = 20%
Price after initial discount = $x \times \dfrac{80}{100}$
Additional discount = 12%
Price after additional discount= $x \times \dfrac{80}{100}\times \dfrac{88}{100}$
But Price after additional discount = SP = 704
$\Rightarrow x \times \dfrac{80}{100}\times \dfrac{88}{100}$ = 704
$\Rightarrow x \times \dfrac{4}{5}\times \dfrac{22}{25} $= 704
$\Rightarrow x = 704 \times \dfrac{25}{22}\times \dfrac{5}{4} = 176 \times \dfrac{25}{22}\times 5 $
= $8 \times 25 \times 5 = 40 \times 25$ = 1000