A shopkeeper allows a discount of 15% on an article and still makes a profit of 20%. What does the shopkeeper pay for an article whose marked price is ₹7,200?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹5,100.
Given that
Marked price = ₹7,200
Discount = 15%
Profit % = 20%
C.P./M.P. = (100 - D)/(100 + P)
C.P./7200 = (100 - 15)/(100 + 20) = 85/120
C.P. = 85 × 60 = ₹5,100