Multiple choice

A Pen stand is marked for sale at Rs. 504. The shop keeper gives a discount of 5% on the sale price of the pen stand and still earns a profit of 20%. What is the purchase price of the article?

  1. Rs. 399

  2. Rs. 405

  3. Rs. 420

  4. Rs. 410
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Marked price = 504. Discount 5% means sale price = 504 * 0.95 = 478.8. Profit 20% means SP = CP * 1.2. CP = 478.8 / 1.2 = 399.

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