A dealer sells an article at a discount of 5% on the marked price. If the marked price is 20% above the cost price and the article was sold for ₹2,280, then the cost price would be:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹2,000.
SP = MP - (Discount on MP)
MP = CP + 20% of CP
Let the cost price be ₹ x.
Marked price = x + 0.20x = 1.20x
Discount on MP = 5% of MP = 0.05 × 1.20x = 0.06x
Selling price = MP - Discount on MP
₹2,280 = 1.20x - 0.06x
₹2,280 = 1.14x
⇒ x = ₹2,280 / 1.14
⇒ x = ₹ 2,000