Multiple choice

The marked price of an article is Rs $200$. A discount of $12\dfrac {1}{2}$ $\%$ is allowed on the marked price and a profit of $25$ $\%$ is made. What is the cost price of the article?

  1. Rs $120$
  2. Rs $140$
  3. Rs $160$
  4. Rs $180$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The selling price after a 12.5% discount on 200 is 200 * (1 - 0.125) = 175. Since there is a 25% profit, the cost price is 175 / 1.25 = 140.

AI explanation

The selling price is the marked price minus the discount, which is 200 - (12.5% of 200) = Rs. 175. Since this selling price includes a 25% profit, it represents 125% of the cost price. Using the formula Cost Price = (Selling Price / 125) * 100, we calculate (175 / 125) * 100, making the cost price Rs. 140.

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