A seller offers a 40% discount on an item whose cost price is Rs. 720. Despite the discount, the seller earns a profit of 20%. What must be the marked price?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹1,440
SP = CP × (1 + profit/100)
SP = 720 × (1 + 20/100)
SP = 720 × 120/100
SP = 720 × 6/5
SP = 864
SP = MP × (1 − discount/100)
864 = MP × (1 − 40/100)
864 = MP × 60/100
864 = MP × 3/5
MP = 864 × 5/3
MP = 1440