A dealer allows 10% discount and still gains 8%. Find the marked price if the cost price is Rs. 500.
Show answer & explanation
Correct answer: B
Explanation
Given:
Cost Price (CP) = ₹500
Profit = 8%
Discount = 10%
By the formula:
SP = CP × (1 + Profit/100)
SP = MP × (1 − Discount/100)
SP = 500 × 1.08 = 540
540 = MP × 0.90
MP = 540 ÷ 0.90 = 600
Marked Price = ₹600