A dealer sets the marked price of a refrigerator 20% higher than its cost price. If he gives a discount of 10% and makes a profit of ₹400, what is the cost price of the refrigerator?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹5,000.
Let the CP = C
Marked price = 1.2C
Selling price after discount = 1.2C × (90/100) = 1.08C
Profit = 1.08C - C = 0.08C
So, 0.08C = 400
⇒ C = 400/0.08 = 5000