A shopkeeper marks his article at a price such that after giving a discount of 25%, he gains 20%. If the marked price of the article is Rs. 736, what is the cost price of the article?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 460
Given that the marked price = 736
So,
Selling price after discount of 25%
= 736 - (736 × 25/100)
= 736 - 184 = 552
Given, profit = 20%
⇒ 1.20 × cost price = 552
⇒ Cost price = 552 × 10/12 = 460