Question

A purchases an article for Rs. 400 and spends Rs. 110 on its repair. He marks the price in such a way that after giving a discount of 15% he gains 25%. What is the marked price of the article?
1. Rs. 800
2. ​Rs. 850
3. ​Rs. 750
4. ​Rs. 825

Answer 1

Correct Answer - Option 3 : ​Rs. 750

Given:

Cost price = Rs. 400 + Rs. 110 = Rs. 510

Discount = 15%

Profit = 25%

Formula used:

Marked Price(MP) = Selling Price(SP) +  Discount

SP = Cost Price(CP) × (100 +  profit%)/100

Calculation:

According to the question = Rs. 510

SP = 510 × (125/100) = Rs. 637.5

Let marked price be 100%

S.P = 100 - 15 = 85%

85% = 673.5

⇒ 100% = 673.5 × (100/85)

⇒ 100% = Rs. 750

∴ The marked price will be Rs. 750.