Question

A man purchased a hair dryer for $\$300$. He marked them at a 20% higher price than the cost price. Finally he sold the hair dryer at 20% discount. Find the selling price of the hair dryer.

• A. $\$300$
• B. $\$288$
• C. $\$0$
• D. $\$20$

Answer 1

The correct option is B $\$288$

Given, cost price of hair dryer $=\$300$

Markup $=20\%\text{of cost price}$
$=20\%\text{of}\$300$
$=\frac{20}{100}\times \$300=\frac{20}{20\times 5}\times \$300$
$=\frac{1}{5}\times \$300$
$=\$60$

$\text{Marked price = Cost price + Markup}$
$=\$300+\$60$
$=\$360$

Discount $=20\%\text{of marked price}$
$=20\%\text{of}\$360$
$=\frac{20}{100}\times \$360=\frac{20}{20\times 5}\times \$360$
$=\frac{1}{5}\times \$360$
$=\$72$

$\therefore \text{Selling price = Marked price - discount}$
$=\$360-\$72$
$=\$288$

Hence, selling price of the hair dryer is $\$288.$