Multiple choice

A shopkeeper marks the price of the article in such a way that after allowing 12% discount, he wants a gain of 12%. If the marked price is Rs. 224, then the cost price of the article is:

  1. 168

  2. 176

  3. 120

  4. 196

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = x. MP = 224, discount = 12%, so SP = 224 × 0.88 = 197.12. This SP gives 12% profit: 197.12 = 1.12x. Solving: x = 197.12/1.12 = Rs. 176.