Multiple choice

A shopkeeper sold a watch for Rs. 630 after giving a discount of 10% on its marked price. If he had not allowed any discount, the profit would be 25%. What is the cost price of the watch?

  1. Rs. 560

  2. Rs. 567

  3. Rs. 600

  4. Rs. 605
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

SP = 630 after 10% discount. Marked Price (MP) = 630 / 0.9 = 700. If no discount, SP = MP = 700. Profit = 25% means SP = 1.25 * CP. 700 = 1.25 * CP -> CP = 700 / 1.25 = 560.

AI explanation

After a 10% discount, the selling price of the watch is 90% of the marked price, so 0.9 * Marked Price = 630, making the marked price Rs. 700. If no discount is allowed, the item sells for this marked price of Rs. 700, which the problem states results in a 25% profit. Using the formula Cost Price = Selling Price / 1.25, we find the cost price is 700 / 1.25 = Rs. 560.

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