Explanation:

Let's break it down:

- Marked Price Calculation:

- The marked price is 60% above the cost price.

- If the cost price (CP) is Rs X, the marked price would be Rs 1.6X.

- Discounts Applied:

- A 10% discount on the marked price leads to a price of 90% of the marked price: 0.9 * 1.6X = 1.44X.

- A subsequent 20% discount on this price results in a final selling price of 80% of the preceding price: 0.8 * 1.44X = 1.152X.

- Profit Calculation:

- The dealer gains Rs 1,064, which means the profit is 1,064 above the CP.

- Selling price (SP) is 1.152X.

- SP - CP = Profit, so 1.152X - X = 1,064.

- Solve for X (Cost Price):

- 0.152X = 1,064.

- X = 1,064 / 0.152 = 7,000.

Thus, the cost price of the article is Rs 7,000.

The correct answer is Option 2: 7,000.

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