Question : The marked price of an article is Rs. 1200. A discount of 40% is given. If there is a loss of 20%, then what is the cost price of the article?
Option 1: Rs. 780
Option 2: Rs. 850
Option 3: Rs. 1020
Option 4: Rs. 900
Correct Answer: Rs. 900
Solution :
Discount = $\frac{40}{100}$ × Marked price
Let's denote the cost price of the article as $C$.
The marked price (MP) is Rs. 1200, and a discount of 40% is given,
So, Discount = $\frac{40}{100}×1200$ = Rs. 480
Selling Price (SP) = Marked Price − Discount
⇒ SP = 1200 − 480 = Rs. 720
Since there is a loss of 20%
Loss = $\frac{20}{100}$ × Cost Price
⇒ Loss = ${0.2C}$
SP = Cost Price − Loss
⇒ 720 = C − 0.2C
⇒ 720 = 0.8C
⇒ $C = \frac{720}{0.8}$
⇒ $C = {900}$
So, the cost price of the article is Rs. 900.
Hence, the correct answer is Rs. 900.
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