Question
A shopkeeper marked an item at Rs. 1000. The discount given
on it is equal to 40% of the difference between marked price and cost price. If he made a profit of 20%, find the cost price.Solution
ATQ,
Let cost price = 100x
Selling price = 100x × 1.20 = Rs. 120x
ATQ,
(1000 - 120x) = (1000 - 100x) × 0.40
⇒ 1000 - 120x = 400 - 40x
⇒ 1000 - 400 = 120x - 40x
⇒ 600 = 80x
⇒ x = 7.5
Cost price = 100 × 7.5 = Rs. 750
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