Multiple choice

A shopkeeper marked his price at 60% more than its cost price and also allow a discount of 20% on marked price also he gives a gift of (37.5) Rs to his customers and even then makes a profit of 25%. Find the cost price of article.

  1. 1600 Rs

  2. 1500 Rs

  3. 1800 Rs

  4. 1250 Rs

  5. 1000 Rs
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = x. MP = x + 0.6x = 1.6x. After 20% discount: SP = 0.8 × 1.6x = 1.28x. Subtract gift: SP = 1.28x - 37.5. Profit is 25%, so SP = 1.25x. Therefore: 1.28x - 37.5 = 1.25x, giving 0.03x = 37.5, so x = 37.5/0.03 = 1250. The claimed answer D (1250 Rs) is correct.

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