Question

The marked price of a book is Rs. 1,140. The retailer marks the price of a good in such a way that he gains 14% after giving a discount of 20%. The cost price of the book is ________

1. Rs. 800
2. Rs. 600
3. Rs. 550
4. Rs. 750

Answer 1

Correct Answer - Option 1 : Rs. 800

Given:

The marked price of a book is Rs. 1,140.

The retailer marks the price of the book in such a way that he gains 14% after giving a discount of 20%.

Concepts used:

M.P. = S.P. + Discount

Discount % = Discount/M.P. × 100

Gain % = Gain/C.P. × 100

Gain = S.P. – C.P.

Calculation:

M.P. of good = Rs. 1,140

Discount % = 20

⇒ {Discount/1,140} × 100 = 20

⇒ Discount = Rs. 228

⇒ S.P. = M.P. – Discount = Rs. 1,140 – Rs. 228 = Rs. 912

Gain % = 14

Let C.P. of good be Rs. x.

⇒ (Rs. 912 – x)/x × 100 = 14

⇒ 114x/100 = 912

⇒ x = Rs. 800

∴ Cost price of book is Rs. 800.