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Question
A cycle dealer offers a discount of 10% and still makes a profit of 26%. What is the actual cost to him of a cycle whose marked price is Rs 840?
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Solution
\[\text { Given, } \]
\[\text { MP of the cycle = Rs } . 840 \]
\[\text { Discount = 10 % } \]
\[\text { So, SP = MP } \times \left( \frac{100 - \text { Discount % }}{100} \right)\]
\[ = 840 \times \left( \frac{100 - 10}{100} \right)\]
\[ = Rs . 756\]
\[\text { Now, SP = Rs . 756 and Gain = 26 % } \]
\[\text { So, CP }= \frac{100}{100 +\text { Gain % }} \times 756\]
\[ = \frac{100}{126} \times 756\]
\[ = Rs . 600\]
\[\text { Hence, the actual cost of the cycle is Rs } . 600 .\]
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