Question:
The price of an article reduces to 576 after two successive discounts. The markup is 80% above the cost price of Rs. 500. What is the new profit percentage if instead of two successive discounts the markup price was further increased successively two times by the same percentage?

Option A):
157%
Option B):
159.2%
Option C):
259.2%
Option D):
300%

Correct Answer is Option B):
159.2%

Explanation:
CP = 500
SP = 576
MP = 900 [80% above the CP]
Now,
SP = MP*[1-(R/100)]2
[R = Rate of Discount ]
576 = 900*[1-(R/100)]2
R = 20%

Again,
SP = MP*[1+(R/100)]2
SP = 900*[1+(20/100)]2
SP = 1296
New Profit Percentage,
= [(SP-CP)/CP]*100
= [(1296-500)/500]*100
= 159.2%.