Multiple choice

A shopkeeper marks the price of an article at Rs. 320. Find the cost price if after allowing a discount of 10%, he still gains 20% on the cost price.

  1. Rs. 240

  2. Rs. 280

  3. Rs. 300

  4. Rs. 264

  5. Rs. 270
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A Correct answer
Explanation

Marked price = 320. Discount 10% means SP = 320 * 0.9 = 288. Gain 20% means SP = CP * 1.2. CP = 288 / 1.2 = 240.

AI explanation

Using the marked price relationship, the selling price is 90% of the marked price, which equals 0.90 multiplied by 320 to give Rs. 288. Because this selling price includes a 20% profit on cost, the cost price is the selling price divided by 1.20. Dividing 288 by 1.20 yields a cost price of Rs. 240.

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