After allowing a discount of 10% on its marked price, the value of a mobile phone is Rs.20,250. If no discount is allowed, then the shopkeeper gains 20%. The cost price of the mobile phone is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Rs. 18,750
Given that
The selling price = 20250 Rs
Discount on MRP = 10 %
The marked price = (20250/90) × 100
= 22500 Rs
If no discount is allowed then the selling price is equal to the marked price = 22500 Rs
Now, the seller gains = 20%
Hence, the cost price of the article = (22500/120) × 100 = 18750 Rs