Question

A cycle merchant allows 20% discount on the marked price of the cycles and still makes a profit of 20%. If he gains Rs 360 over the sale of one cycle, find the marked price of the cycle.

Answer 1

\[\text { Given }, \]

\[\text { Gain on one cycle = Rs . } 360\]

\[\text { Gain = 20 %  }\]

\[\text { Gain % } = \frac{\text { Gain }}{CP} \times 100\]

\[20 = \frac{360}{CP} \times 100\]

\[CP = Rs . 1800\]

\[SP = \frac{100 + \text { Gain % }}{100} \times CP\]

\[SP = \frac{120}{100} \times 1800 = Rs . 2160\]

\[\text { SP = Rs } . 2160\]

\[\text { Discount = 20 % } \]

\[\text { MP } = \frac{100 \times SP}{100 -\text {  Discount % }}\]

\[\text { MP }= \frac{100 \times 2160}{80} = Rs . 2700\]

\[\text { Hence, the MP of one cycle is Rs } . 2700 .\]