Question

An article is marked at ₹ 800, a trader allows a discount of 2.5% and gains 20% on the cost. Find the cost price of the article.

Answer 1

Article is marked at ₹ 800.

Discount at 2.5% on ₹ 800 = `800 xx 2.5/100` =
₹ 20

∴ Selling price = Marked price – Discount

= 800 - 20 = ₹ 780

Trader gains 20% profit on cost.

∴ If the cost price is ₹ 100, then selling price will
₹ 120.

We need to find cost, for selling price = 780

Cost price will be

100  →  120

?  → 780

∴ Cost price = `(780 xx 100)/120` = 650

∴ The cost of the article is ₹ 650.