A shopkeeper buys a note book for ₹85. He wants a profit of 20% after giving a discount of 15%. At what price should he mark the note book?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹120
Cost Price of notebook = Rs 85
Discount% = 15%
Profit% = 20%
Profit% = (S.P. - C.P.)/C.P.
Let the marked price of a notebook be Rs x.
Discount on the notebook = x - 0.15x = Rs 0.85x
Selling Price of a notebook = Rs 0.85x
Putting the value in the Profit% -
20% = (0.85x - 85)/85
20(85)/100 = 0.85x - 85
17 + 85 = 0.85x
0.85x = 102
x = 10200/85 = Rs. 120