Question

A person allows a 10% discount for each payment from the marked price of a toy and still he makes a 10% gain. What is the cost price of the toy which is marked Rs. 770?
1. Rs. 610
2. Rs. 620
3. Rs. 630
4. Rs. 640

Answer 1

Correct Answer - Option 3 : Rs. 630

Given 

Marked price of toy = Rs 770 

Discount percent = 10% 

Formula used 

Marked price : cost price = 100 + profit% : 100 - discount% 

Calculation 

⇒ Marked price : Cost price = 110 : 90 = 11 : 9 

⇒ Marked price = Rs 770 

⇒ 11x = 770 

⇒ x = 70 

⇒ Cost price of toy = 9x = 9 × 70 = Rs 630 

∴ the cost price of a toy is Rs 630