Question

Ram marked an certain article for Rs.490. He sold it for a discount of Rs.100. If he gains 30% in the whole transaction, find the initial cost price of the article.
1. Rs. 250
2. Rs. 300
3. Rs. 320
4. Rs. 270
5. Rs. 350

Answer 1

Correct Answer - Option 2 : Rs. 300

Given:

Marked Price = Rs.490

Discount on the Marked price = Rs.100

The gain in the overall transaction (Profit%) = 30%

Formulae Used:

Profit = [(SP – CP)/CP] × 100

Discount = SP – MP

Calculation:

Let the initial cost price of the article be Rs.x

Ram sold the article for a discount of Rs.100

Hence, the new SP = Rs. (490 – 100)

⇒ Rs. 390

Overall gain in the transaction = 30%

So, we get:

30 = [(390 – x)/x] × 100

⇒ 30x = 39000 – 100x

⇒ 130x = 39000

⇒ x = Rs.300

∴ The initial Cost Price of the article is Rs. 300