An iron is bought for ₹ 210. Decide its MRP so that after a discount of 5%, you still gain 90%.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Rs. 420
Let's assume the MRP of the article = x
Discount = 5%
SP = x × (100 - 5)/100 = 95x/100
and Profit = 90%
So,
CP = SP × 100/(100 + Profit%)
CP = 95x/100 × 100/(100 + 90%) = 95x/190
According to the question,
210 = 95x/190
x = Rs 420