Multiple choice

Marked price of a shirt is $45. A storekeeper earns a profit of 20% even after giving a discount of 20% on the marked price of the shirt. At what cost did he purchase the shirt?

  1. $36
  2. $35
  3. $32
  4. $30
  5. $28
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The selling price is 80% of the marked price (45), so SP = 0.8 * 45 = 36. Since there is a 20% profit, SP = 1.2 * Cost Price. Thus, 36 = 1.2 * CP, which means CP = 36 / 1.2 = 30.

AI explanation

The selling price of the shirt is the marked price minus the 20% discount, so selling price equals 45 minus 9, which is 36. Using the formula Selling Price equals Cost Price multiplied by (1 plus Profit Percentage divided by 100), we substitute the values to get 36 equals Cost Price multiplied by 1.20. Dividing 36 by 1.20 gives the cost price of 30.