Question
A shopkeeper marks an article at Rs 500. He allows a
discount of 10% on the marked price but still makes a profit of 20% on the cost price. Find the cost price of the article.Solution
Marked Price (MP) = 500 Discount = 10% of 500 = 50 Selling Price (SP) = 500 − 50 = 450 Let Cost Price (CP) = C. Given profit = 20% of CP ⇒ SP = 1.2C So 1.2C = 450 C = 450 / 1.2 = 450 × (10/12) = 450 × (5/6) = 375
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