Question

If the cost price of an article is Rs. 1000 and seller wants to earn 10% profit, after allowing the customer a discount of 12%.find the market price of an article.
1. Rs. 1400
2. Rs. 1500
3. Rs. 1000
4. Rs. 1250

Answer 1

Correct Answer - Option 4 : Rs. 1250

Given

Cost price of an article = Rs. 1000

Profit = 10%

Discount = 12%

Formula used

Selling price = Cost price + Profit

and Selling price = Market price - Discount

Calculation

The cost price is Rs. 1000

Selling price = 1000 + 10% of 1000

⇒ Selling price = Rs. 1100

Selling price = Market price - discount

let the market price is Rs.x

⇒ 1100 = x - 12% of x

⇒ 1100 = 88x/100

⇒ x = (1100 × 100)/88

⇒ x = Rs. 1250

∴ Market price is Rs. 1250