Multiple choice

A merchant offers an 8% discount on all of his goods and still makes a profit of 15%. If an item is marked at a price of Rs. 250, then its cost price is

  1. Rs. 180

  2. Rs. 200

  3. Rs. 230

  4. Rs. 187
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Marked price = 250. Discount = 8 percent of 250 = 20. Selling price = 250 - 20 = 230. Profit = 15 percent. SP = CP * 1.15. 230 = CP * 1.15. CP = 230 / 1.15 = 200.

AI explanation

The selling price is the marked price minus the 8% discount, so SP equals 250 times 0.92, which is Rs. 230. This selling price includes a 15% profit on the cost price, meaning CP times 1.15 equals 230. Dividing 230 by 1.15 gives the cost price of Rs. 200.

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