An article is marked at ₹950. If it is sold at a discount of 20%, then the selling price becomes 2.5 times of its cost price. What is the cost price?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹304
Selling price = 950 × (1 − 20/100)
= 950 × (80/100)
= 760
selling price = 2.5 × cost price
760 = 2.5 × cost price
Cost price = 760 ÷ 2.5
= 760 × (1/2.5)
= 760 × (10/25)
= 304