Multiple choice

A tradesman marks his goods at such a price that after allowing a discount of 15%, he makes a profit of 20%. What is the marked price of an article whose cost price is Rs. 170?

  1. Rs. 240

  2. Rs. 260

  3. Rs. 220

  4. Rs. 200
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A Correct answer
Explanation

Cost Price = 170. Profit = 20%, so Selling Price = 170 * 1.2 = 204. Marked Price (MP) * (1 - 0.15) = 204. MP = 204 / 0.85 = 240.

AI explanation

To achieve a 20% profit on a cost price of Rs. 170, the required selling price is 1.20 times 170, which equals Rs. 204. Let the marked price be M; since a 15% discount is applied, the selling price is 0.85 times M. Setting 0.85M = 204 gives M = 240. The marked price is Rs. 240.

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