A trader earns a profit of 20% by selling an article after giving a discount of 20% on the marked price of the article. If the cost price of the article is Rs. 448, then its marked price (in Rs.) is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 672
Formula used:
Selling price = Cost price(1 + Profit%) ---- (1)
Selling price = Marked price - Marked price × (discount%) ---- (2)
Calculations:
Let the cost price be 100x
Selling Price = 120% of 100x = 120x
Marked price = (120x/80) × 100 = 150x
According to the question;
⇒ Cost price = 100x
⇒ 100x = 448
⇒ x = 4.48
Marked price = 150x = 150 × 4.48
⇒ Rs 672