Multiple choice

A trader offers a discount of 10% on the marked price of an article and still makes a profit of 20%. If the marked price is Rs.1600, then the cost price is

  1. $Rs.1200$
  2. $Rs.1400$
  3. $Rs.1600$
  4. $Rs.1800$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Selling price after 10% discount = 1600 × 0.90 = Rs.1440. This gives 20% profit on CP. CP × 1.20 = 1440. CP = 1440/1.20 = Rs.1200.