Question
A trader marks an article 50% above the cost price. He
gives a discount of 20% on the marked price. If the cost price is increased by 25% and the marked price remains unchanged, then the profit becomes Rs. 100. What is the original cost price?Solution
ATQ, Let original cost price = x Marked price = 150% of x = 1.5x Selling price after 20% discount = 80% of 1.5x = 1.2x New cost price = 125% of x = 1.25x New profit = 1.2x - 1.25x = negative, not Rs. 100 So the condition is inconsistent. If discount is 10%, then Selling price = 90% of 1.5x = 1.35x New profit = 1.35x - 1.25x = 0.10x Given 0.10x = 100 x = 1000 Hence, the correct answer is Rs. 1000.
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