Multiple choice

An item is sold for Rs. 504 after allowing 20% discount and still a profit of 5% has been earned. The marked price is how much more than the cost price?

  1. Rs. 120

  2. Rs. 135

  3. Rs. 150

  4. Rs. 160
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Selling price = 504. Discount = 20%, so Marked Price = 504 / 0.8 = 630. Profit = 5%, so Cost Price = 504 / 1.05 = 480. Difference = 630 - 480 = 150.

AI explanation

First, find the cost price using the formula Cost Price equals Selling Price multiplied by 100 divided by the quantity 100 plus the profit percentage, which gives 504 times 100 divided by 105, resulting in Rs. 480. Next, find the marked price using the formula Marked Price equals Selling Price multiplied by 100 divided by the quantity 100 minus the discount percentage, yielding 504 times 100 divided by 80, which is Rs. 630. The difference between the marked price of Rs. 630 and the cost price of Rs. 480 is Rs. 150.

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