Question

A shopkeeper marked an article at Rs. 1500 and gives discount to a customer of 10% but still earns a profit of 20%. Find the cost price of the article.
1. Rs. 1135
2. Rs. 1115
3. Rs. 1125
4. Rs. 1145

Answer 1

Correct Answer - Option 3 : Rs. 1125

Given:

Marked price = Rs. 1500

Discount = 10%

Profit = 20%

Formula used:

SP = MP × [(100 – Discount%)/100]

CP = SP × [100/(100 + Gain%)]

Calculation:

SP = Rs. 1500 × [(100 – 10)/100]

⇒ Rs. 1500 × (90/100)

⇒ Rs. 1350

CP = Rs. 1350 × [100/(100 + 20)]

⇒ Rs. 1350 × (100/120)

⇒ Rs. 1125

∴ The cost price of article is Rs. 1125