Multiple choice

A ready-made garment shop in Delhi allows $20 \%$ discount on its garments and still makes a profit of $20 \%$. Find the marked price of a dress which is bought by the shopkeeper for $Rs. \ 400.$

  1. $Rs.\ 600$
  2. $Rs.\  650$
  3. $Rs.  \ 700$
  4. $Rs. \ 750$
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A Correct answer
Explanation

CP = 400, Profit = 20%, so SP = 400 * 1.2 = 480. Discount = 20%, so SP = MP * (1 - 0.2) = 0.8 * MP. 0.8 * MP = 480, so MP = 480 / 0.8 = 600.

AI explanation

To achieve a 20% profit on the cost price of Rs. 400, the selling price must be 400 + (20/100 * 400) = 480. Let the marked price be M; since a 20% discount is given, the selling price is 80% of M, so 0.8M = 480. Solving for M gives M = 600. The marked price is Rs. 600.

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