# A shopkeeper allows a discount of 20% on an article and still makes a profit of 25%. What does he pay for an article whose marked price is Rs. 800?

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A shopkeeper allows a discount of 20% on an article and still makes a profit of 25%. What does he pay for an article whose marked price is Rs. 800?
1. Rs. 800
2. Rs. 492
3. Rs. 640
4. Rs. 512

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Correct Answer - Option 4 : Rs. 512

Given -

Marked price = Rs. 800, Profit = 25%, Discount = 20%

Formula used -

(cost price/marked price) = (100 - Discount)/(100 + profit)

Solution -

Let the cost price be Rs. x.

⇒ (x/800) = (80/125)

⇒ x = (800 × 80)/125

⇒ x = Rs. 512

∴ cost price of the article is Rs. 512