Question

A shopkeeper earns 17% profit by selling an article at 10% discount on its marked price. If its cost price is Rs. 480, then the marked price (in Rs.) of the article is: 
1. 640
2. 624
3. 600
4. 636

Answer 1

Correct Answer - Option 2 : 624

Given:

Cost price of an article = Rs. 480

Profit = 17%

Discount = 10%

Formula used:

Marked price = [(100 + Profit)/(100 – Discount) × CP]

Calculation:

According to the question

Marked price = [(100 + Profit)/(100 – Discount) × CP]

Marked price = [(100 + 17)/(100 – 10) × 480]

⇒ (117/90 × 480)

⇒ (56,160/90)

⇒ Rs. 624

∴ The value of marked price of an article is 624