Multiple choice

The marked price of an article is Rs.150.00. If he allows a discount of 10%, he still gains a profit of 25%. The cost price of the article is

  1. Rs.54

  2. Rs. 102

  3. Rs.108

  4. Rs. 100
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Marked Price = Rs.150. After 10% discount, Selling Price = 150 × 0.90 = Rs.135. This SP includes a 25% profit on Cost Price, so CP = SP/1.25 = 135/1.25 = Rs.108. Alternatively: Profit = 25% of CP = 0.25 × CP, so CP + 0.25 CP = 135, giving 1.25 CP = 135, CP = 108. Key distractor: Rs.100 incorrectly ignores the discount.

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