Correct Answer: Original and reduced price 81 Tk and 7.5 Tk respectively.

Explanation:

At $6\frac{1}{4}$%  reduction, price of sugar = (100-$\frac{25}{4}$) = ($\frac{400-25}{4}$)tk = $\frac{375}{4}$ TK

If original pnce IS 100 TK then reduced price = $\frac{375}{4}$ TK

If original price is 120 Tk, then reduced price = $\frac{375\times 120}{4\times 100}$ = 12.5 TK

The reduced price of sugar = (120 – 112.5) = 7.5 TK

Now, If reduced price Is $\frac{375}{4}$ tk, then original price = 100 Tk

If reduced price is 7.5 tk, then original price = $\frac{100×7.5×4}{375}$= 8 Tk.