Question
A shopkeeper marks an item at Rs 1500. He gives a
discount of 10% on the marked price and still makes a profit of 20% on his cost price. Find the cost price of the item.Solution
Marked Price (MP) = 1500 Discount = 10% of 1500 = 150 Selling Price (SP) = 1500 − 150 = 1350 Let Cost Price (CP) = x. Profit% = 20% ⇒ SP = 120% of CP = 1.2x So 1.2x = 1350 x = 1350 / 1.2 = 13500 / 12 = 1125 Answer: Cost price = Rs 1125.
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