Question
A shopkeeper offers a discount of 10% on the marked
price and still makes a profit of 20% on the cost price. If the marked price of an article is Rs 600, find its cost price.Solution
Discount = 10% of 600 = 0.10 × 600 = Rs 60 Selling Price (SP) = 600 − 60 = Rs 540 Let Cost Price (CP) = C. Profit = SP − CP = 20% of CP 540 − C = 0.20C 540 = 1.20C C = 540 / 1.20 = Rs 450 Answer: Cost Price = Rs 450
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