Multiple choice

What price should a tradesman mark on an article which costs him Rs. 300 to gain 20% after allowing 4% discount?

  1. Rs. 324

  2. Rs. 350

  3. Rs. 375

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

To gain 20% on a cost of 300, the selling price must be 300 * 1.20 = 360. If the discount is 4%, then 360 = Marked Price * (1 - 0.04), so Marked Price = 360 / 0.96 = 375.

AI explanation

To gain 20% on a cost price of Rs. 300, the target selling price is 300 * 1.20 = Rs. 360. Using the marked price formula, Marked Price = (Selling Price * 100) / (100 - Discount), we get Marked Price = (360 * 100) / (100 - 4). This simplifies to 36000 / 96, which gives the marked price as Rs. 375.

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