Question
A man purchased a book for an amount equal to the simple
interest earned on Rs. 6000 lent to a friend for 2 years at an interest rate of 4% per annum. If the book is sold at a profit of 20% after a discount of 10%, what is the marked price of the book?Solution
Cost price of the book = (6000 × 2 × 4)/100 = Rs. 480 Profit = 20% Selling price of the book = 1.2 × 480 = Rs. 576 Discount = 10% Marked price of the book = 576 ÷ 0.9 = Rs. 640
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