A jeweler marks a necklace at 30% above its cost price. She gives a cash discount of ₹150 on the marked price. If the necklace is sold for ₹1800 and she earns a profit of 20%, what is the cost price of the necklace?
Show answer & explanation
Correct answer: A
Explanation
Discount = ₹150
Selling price = ₹1800
Profit = 20%
According to the formula:
Selling Price = Purchasing Price × (1 + Profit/100)
Selling price = 1.20 × CP
1800 = 1.20 × CP
CP = 1800 / 1.20
Purchase price = ₹1500