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Question : A shopkeeper allows a discount of 15% on an article and still makes a profit of 20%. What does the shopkeeper pay for an article whose marked price is INR 7,200?

Option 1: INR 6,120

Option 2: INR 5,120

Option 3: INR 6,100

Option 4: INR 5,100


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: INR 5,100


Solution : Marked price = INR 7,200
Profit = 20%
Discount = 15%
Formula used:
$\frac{\text{Cost price}}{\text{Marked price}} = \frac{100 - \text{Discount}}{100 + \text{Profit}}$
Solution:
Let the cost price be Rs. $x$.
⇒ $\frac{x}{7,200} = \frac{85}{120}$
⇒ $x = \frac{7,200 × 85}{120}$
⇒ $x =$ INR 5,100
So, the cost price of the article is INR 5,100.
Hence, the correct answer is INR 5,100.

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