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

    Question

    A merchant sets the price of an

    article 60% above its cost price and offers a discount of 25% while selling it. If his profit on the sale is Rs. 120, determine the cost price of the article.
    A Rs.600 Correct Answer Incorrect Answer
    B Rs.650 Correct Answer Incorrect Answer
    C Rs.665 Correct Answer Incorrect Answer
    D None of these Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the cost price of the article be Rs. ‘20x’. So, the marked price of the article = 1.6 × 20x = Rs. ‘32x’. Selling price of the article = 0.75 × 32x = Rs. ‘24x’. ATQ, 24x – 20x = 120 Or, 4x = 120 Or, x = 30 So, the cost price of the article = 20x = 20 × 30 = Rs. 600.

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