Question
A shopkeeper allows a discount of 10% on the marked
price and still makes a profit of 20%. If the marked price of the article is Rs. 1,500, find the cost price of the article.Solution
Let the cost price be C. Selling price = 90% of marked price = 0.90 Ă— 1,500 = Rs. 1,350 Profit = 20%, so selling price = 1.20 Ă— cost price 1,350 = 1.20 Ă— C C = 1,350 / 1.20 = Rs. 1,125
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