A shopkeeper allows two successive discounts of 20% and 10% on an article marked at ₹5,000. If he still earns a profit of 12%, what is the cost price of the article?
Show answer & explanation
Correct answer: C
Explanation
Marked Price (MP) = ₹5000
Price after the first discount of 20% = 5000 × 80/100
= ₹4000
Selling Price (SP) after the second discount of 10% = 4000 × 90/100= ₹3600
At a profit of 12%,
SP = 112% of CP
3600 = 112% of CP
CP = 3600 × 100/112= ₹3214.29