Question
A shopkeeper marks an item at ₹800 and offers a 20%
discount. He still makes a profit of 25%. What is the cost price of the item?Solution
Selling price after a 20% discount = 800 × (1 - 20/100) = ₹800 × 0.8 = ₹640. Cost price = Selling price / (1 + Profit%) = ₹640 / 1.25 = ₹512. Correct option: b
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