Multiple choice

Raghu sold an article for Rs. 180 after allowing a 20% discount on its marked price. Had he not allowed any discount, he would have gained 20%. What is the cost price of the article?

  1. Rs. 190.40

  2. Rs. 192.80

  3. Rs. 188.60

  4. Rs. 187.50
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The marked price (MP) of the article can be found from the selling price after a 20% discount: MP * 0.8 = 180, which gives MP = Rs. 225. If sold at the marked price with no discount, the profit is 20%, meaning 1.2 * CP = 225. Solving for the cost price gives CP = 225 / 1.2 = Rs. 187.50.

AI explanation

The marked price is found by dividing the selling price by (1 minus 0.20), so 180 divided by 0.80 equals 225. This marked price of 225 represents a 20% gain over the cost price. Using the formula Cost Price equals Selling Price divided by (1 plus Profit Percentage divided by 100), the cost price is 225 divided by 1.20, which equals 187.50. The cost price is Rs. 187.50.

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