Multiple choice

A dealer allows 25% discount on the marked price of articles and earns a profit of 20% on them. What is the marked price of the article on which he gains Rs.800 ?

  1. Rs.$6000$
  2. Rs.$6400$
  3. Rs.$7200$
  4. Rs.$7000$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP be the cost price. Profit = 20% of CP = 0.2 * CP = 800. So CP = 4000. Selling price SP = 1.2 * CP = 4800. SP is also 75% of Marked Price (MP) because of 25% discount. 0.75 * MP = 4800. MP = 4800 / 0.75 = 6400.

AI explanation

Let the marked price be Rs.x, so the selling price after a 25% discount is 0.75x. The profit percentage formula gives cost price as selling price divided by 1.2, so the cost price is 0.75x divided by 1.2, which equals 0.625x. The given profit is Rs.800, so using profit equals selling price minus cost price we get 0.75x minus 0.625x equals 800. Solving 0.125x equals 800 gives a marked price of Rs.6400.

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