Question : If a dealer purchases an attic for INR 900 and fixes the list price in such a way that he gains 20% after allowing a 10% discount, then the list price is:
Option 1: INR 1,180
Option 2: INR 1,080
Option 3: INR 1,200
Option 4: INR 1,100
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Correct Answer: INR 1,200
Solution : Cost price = Rs. 900 Discount = 10% of marked price Profit = 20% of cost price Selling price = cost price + profit = cost price + 20% of cost price = 120% of INR 900 = INR 1,080 Selling price = marked price – discount ⇒ INR 1080 = marked price – 10% of marked price ⇒ INR 1080 = 90% of marked price ⇒ Marked price = INR 1,200 Hence, the correct answer is INR 1,200.
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