The marked price of an item is Rs. 15,800. If a shopkeeper earns a profit of 18% after allowing a discount of 20%, then the cost price (in Rs.) of the item (nearest to Rs.1) is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 10712
Given:
Marked price = 15800
Profit % = 18%
Discount % = 20%
Formula used:
Selling price = Marked price - Marked price × Discount% ---- (1)
Selling price = Cost price + Cost price × profit% ---- (2)
Calculations:
Using equation (1), when discount is 20%
Selling price = 15800 - 15800 × 20% = 12640
Using equation (2), when profit is 18%
12640 = Cost price + Cost price × 18%
Cost price = (12640/118) × 100 = 10711.86 ≈ 10712