A shopkeeper charges his customer 14% more than the cost price. If a customer paid ₹18,240 for a mobile phone, then the cost price of the mobile phone was:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹16,000.
A shopkeeper charges his customer 14% more than the cost price. If a customer paid ₹18,240 for a mobile phone, then the cost price of the mobile phone was:
The selling price of the mobile phone (S.P.) = ₹18,240
Markup percentage = 14%
Cost price = [100/(100 + Markup%)] × S.P.
= [100/(100 + 14)] × 18240
= (100/114) × 18240
= 16000
Therefore, the cost price of the mobile phone was ₹16,000.