A shopkeeper pays 12% of the cost price as tax while purchasing an item whose cost is Rs.500. He wants to earn a profit of 20% after giving a discount of 16% on the marked price. So, the marked price should be:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e Rs.800.
| Understanding/Applications |
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Original cost price of item = 500 Cost price after paying 12% tax = Tax + Original price = (12/100) x 500 + 500 = 60 + 500 = 560 Shopkeeper want to make 20% profit so selling price = Cost price + 20% of cost price = 560 + (20/100) x 560 = 560 + 112 = 672 But it is given that he gave 16% discount on marked price. Let marked price is 100a so selling price = 100 a - Discount = 100a - (16/100) x 100 a = 100a -16a = 84a So selling price = 84a = 672 Marked price = (672/84a) x 100a = 800 |