A retailer marks up his goods by 130% and offers 25% discount. What will be the selling price (in ₹) if the cost price is ₹ 1600?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 2760.
Calculating Marked Price:
Marked Price (MP) = CP × (1 + Markup%/100)
⇒ MP = ₹1600 × (1 + 130/100)
⇒ MP = ₹1600 × 2.3
⇒ MP = ₹3680
Calculating Selling Price:
⇒ Selling Price (SP) = MP × (1 - Discount/100)
⇒ SP = ₹3680 ×(1 - 25/100)
⇒ SP = ₹3680 × 0.75
⇒ SP = ₹2760
Therefore, the selling price will be ₹2760.