Multiple choice general knowledge math & puzzles

A salesman earns a commission of 3% on the value of sale that he makes. If by selling a radio at 60 % of the marked prices, he earns a commission of Rs. 12, then the marked price of the radio is?

  1. 667

  2. 700

  3. 655

  4. 680
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Commission = 3% of selling price = Rs. 12. So selling price = 12/0.03 = Rs. 400. Selling price is 60% of marked price, so marked price = 400/0.6 = Rs. 666.67, approximately Rs. 667. The reverse calculation confirms: 667 * 0.6 = 400.2, 3% of 400.2 ≈ 12.

AI explanation

To solve this question, let's assume the marked price of the radio is x.

According to the given information, the salesman sells the radio at 60% of the marked price. Therefore, the selling price of the radio is 0.6x.

The salesman earns a commission of 3% on the selling price. This commission is given as Rs. 12.

We can set up the equation:

0.03 * (0.6x) = 12

Simplifying the equation:

0.018x = 12

Dividing both sides by 0.018:

x = 12 / 0.018

x = 666.67

Therefore, the marked price of the radio is approximately Rs. 667.

The correct answer is option A.

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