A shopkeeper kept the marked price of an item at ₹500. He sold it at a scheme discount of 10% and 20% and got a profit of 25%. What was the cost price of the item?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹288.
.Calculate the Selling Price (SP) after discounts:
⇒ First discount: 10% of ₹500 = ₹50
⇒ Price after first discount: ₹500 - ₹50 = ₹450
⇒ Second discount: 20% of ₹450 = ₹90
⇒ Final Selling Price (SP): ₹450 - ₹90 = ₹360
Calculate the Cost Price (CP) given the profit:
Profit is 25% of the Cost Price (CP)
⇒ So, Selling Price (SP) = 1.25 × Cost Price (CP)
⇒ ₹360 = 1.25 × CP
⇒ CP = ₹360 / 1.25 = ₹288
Therefore, the cost price of the item was ₹288.