Question
A trader marks an article 40% above its cost price. He
then allows a discount of 20% on the marked price and sells it for Rs 896. Find the cost price of the article.Solution
Let cost price = C. Marked price = C × (1 + 40/100) = C × 140/100 = 7C/5 After 20% discount: Selling price = (80/100) × (7C/5) = (4/5) × (7C/5) = 28C/25 Given 28C/25 = 896 ⇒ 28C = 896 × 25 896 × 25 = 896 × (100/4) = 89,600/4 = 22,400 So 28C = 22,400 C = 22,400 / 28 = 800 Answer: Cost price = Rs 800.
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