Multiple choice

The marked price of an article is Rs. 700. A shopkeeper gives a discount of 20% and still makes a profit of 40%. What is the cost price (in Rs.) of the article?

  1. 400

  2. 450

  3. 300

  4. 350
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Marked price = 700. Discount 20% means selling price = 700 * 0.8 = 560. Profit 40% means cost price * 1.4 = 560. Cost price = 560 / 1.4 = 400.

AI explanation

The selling price is the marked price of Rs. 700 minus the 20% discount, which equals Rs. 560. Because this selling price yields a 40% profit, it represents 140% of the cost price. Dividing 560 by 1.40 gives the cost price of Rs. 400.

Keep practicing — related questions