A shopkeeper marks his goods in such a way that after allowing a discount of 22% he gains 20%. If the cost price of the article is ₹650, then its marked price is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹1,000.
The cost price (CP) of the article is = ₹650.
The shopkeeper allows a discount of = 22%
Gain = 20%
Hence
SP = 120%
Selling Price (SP) = Cost Price (CP) + 20% of CP
⇒ SP = 650 + 0.20 × 650
⇒ SP = 650 + 130
⇒ SP = 780
Let M be the marked price. The selling price after allowing a discount of 22% is:
SP = M × (1 − 0.22)
SP = M × 0.78
We know that the selling price SP is ₹780.
Thus:
780 = M × 0.78
MP = 780/0.78
M = 1000