Question

A person buys an article after a discount of 20% on its marked price. He spends Rs. 500 on its repair, and makes a profit of 20% by selling it for Rs. 1,800. What is the marked price of the article?
1. Rs. 2,000
2. Rs. 1, 150
3. Rs. 1,500
4. Rs. 1,250

Answer 1

Correct Answer - Option 4 : Rs. 1,250

Given:

Selling price = Rs. 1800

Discount = 20%

Profit % = 20%

Repair charge = Rs. 1800

Formula used:

C.P = (S.P × 100)/(100 + profit%)

M.P = [C.P × 100/(100 - Discount%)]

Where, S.P = Selling Price

C.P = Cost Price

M.P = Marked Price

Calculation:

According to the question,

C.P = (S.P × 100)/(100 + profit%)

⇒ C.P = (1800 × 100)/(100 + 20%)

⇒ C.P = 1800 × 100/120 = Rs. 1500

He spends Rs. 500 on its repair,

⇒ C.P = 1500 - 500 = Rs. 1000

M.P = [C.P × 100/(100 - Discount%)]

⇒ M.P = 1000 × 100/80 = Rs. 1250

∴ The marked price of the article is Rs. 1,250.