Multiple choice

A shopkeeper sells an item at a discount of 40% on the item's listed price of Rs. 1500.00. He still makes a profit of 20% on the original cost of the item. What is the original cost of the item?

  1. Rs. 500

  2. Rs. 750

  3. Rs. 600

  4. Rs. 1080
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Selling Price = 1500 - 40% of 1500 = 1500 - 600 = 900. Profit is 20% on Cost Price (CP). So, 1.2 * CP = 900. CP = 900 / 1.2 = 750.

AI explanation

The shopkeeper gives a 40% discount on the listed price of Rs. 1500, so the selling price is 60% of 1500, which is Rs. 900. This selling price yields a 20% profit on the original cost, meaning the selling price is 120% of the cost. Therefore, the original cost is (900 / 120) * 100, which is Rs. 750.

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