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      Question

      The difference between an article's tag price and its

      actual selling price equals 40% of the difference between the tag price and cost price. If the profit earned is 25% and the marked price is Rs. 800, find the cost price.
      A Rs.920 Correct Answer Incorrect Answer
      B Rs.520 Correct Answer Incorrect Answer
      C Rs.565 Correct Answer Incorrect Answer
      D Rs.650 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      ATQ,
      Let the cost price be Rs. 100x

      Then selling price = Rs. 100x Γ— 1.25 = Rs. 125x

      ATQ,

      (800 - 125x) = (800 - 100x) Γ— 0.40

      Or, 800 - 125x = 320 - 40x

      Or, 480 = 85x

      So, x = 5.65

      So, cost price = Rs. 100 Γ— 5.65 = Rs. 565

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