Multiple choice

A shopkeeper offers 10\% discount on the marked price of his articles and still makes a profit of 20\%. What is the actual cost of the article marked Rs 500 for him?

  1. Rs 440

  2. Rs 425

  3. Rs 400

  4. Rs 375

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

Marked price = Rs 500. After 10% discount, selling price = 500 × 0.9 = Rs 450. Profit is 20%, meaning CP × 1.2 = SP. So CP = 450/1.2 = Rs 375. The actual cost is Rs 375.