Question

Ram purchased a book and marked the price of the book 16% higher than the cost price but sold it after giving a discount of 5% at the marked price. Find out the cost price at which he purchased the book if the difference between the selling price and the marked price is 17.4 rupees. 

1. 200
2. 250
3. 300
4. 400 

Answer 1

Correct Answer - Option 3 : 300

Given:

The marked price of the book is 16% more than the cost price.

Discount on marked price is 5%

The difference between the marked price and the selling price is Rs 17.4.

Concept Used :

 Marked price = cost price + increment on the cost price

Selling price = Marked price – discount on the marked price

Calculations :

Let the cost piece of the book be 100x

Marked price of the book = 100x + 16% of 100x = 100x + 16x

⇒ 116x

Discount price = 5% of 116x = 5.8x

According to the question

The difference in the selling price and marked price i.e., discount price = 17.4 rupees

5.8x = 17.4

⇒ x = 3

Cost price = 100x = 100 × 3

⇒ 300

∴ The cost price of the book is Rs 300