Multiple choice

A shopkeeper buys an article for Rs. 400 and marks it for sale at a price that gives him 80% profit on its cost after giving 15% discount on the marked price to his customer. Calculate the (approximate) marked price of the article.

  1. Rs. 847

  2. Rs. 792

  3. Rs. 933

  4. Rs. 647

  5. None of the above
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A Correct answer
Explanation

Cost price = 400. Profit = 80% of 400 = 320. Selling price = 400 + 320 = 720. The selling price is 85% of the marked price (since 15% discount is given). Marked price = 720 / 0.85 = 847.05, which is approximately 847.

AI explanation

The target selling price to achieve an 80% profit on the Rs. 400 cost price is 400 + (0.80 * 400) = 720. Using the marked price formula, Marked Price * (1 - Discount/100) = Selling Price. We have Marked Price * 0.85 = 720, so the marked price is 720 / 0.85, which equals Rs. 847. The result is Rs. 847.

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