A trader marked an article 40% above its cost price. He then allowed a discount of 20% on the marked price. If the selling price of the article was ₹560, what was its cost price?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹500.
Let CP = x
MP = 1.4x
SP = 1.4x × 0.8 = 1.12x
1.12x = 560
⇒ x = 560/1.12 = 500