An article marked for ₹275 is sold at 5% discount. The seller still gains 4.5%. What did he pay for it?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹250.
Marked price of the article (M.P.) = ₹275
Discount = 5%
Gain = 4.5%
Selling price of the article (S.P.) = [(100 - Discount%)/100] × M.P.
= [(100 - 5)/100] × 275
= (95/100) × 275
= 261.25
Cost price = [100/(100 + Gain%)] × S.P.
= [100/(100 + 4.5)] × 261.25
= (100/104.5) × 261.25
= 250
Therefore, the seller paid ₹250 for the article.