New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    A watch dealer pays 10% customs duty on a watch which

    costs Rs.500 abroad. He desires to make a profit of 20% after giving a discount of 25% to the buyer, The marked price should be
    A Rs. 950 Correct Answer Incorrect Answer
    B Rs. 800 Correct Answer Incorrect Answer
    C Rs. 880 Correct Answer Incorrect Answer
    D Rs. 660 Correct Answer Incorrect Answer

    Solution

    cost price (CP) of watch = cost + custom duty CP = 500 + (10/100) × 500 = 500 + 50 = 550 profit = 20% profit = (profit percent / 100) × CP = (20/100) × 550 = 110 selling price (SP) = CP + profit SP = 550+110 = 660 discount = 25% SP = 75% of MP {MP= marked price} 660 = 75% of MP MP = 660/75 × 100 = 880

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