Question

A shopkeeper allows his customers $10\%$ off on the marked price of goods and still gets a profit of $25\%$. What is the actual cost to him of an article marked Rs. 250?

Answer 1

Marked price = Rs. 250
Discount allowed = $10\%$
$\therefore$ Selling price $=\frac{M.P\times (100-Discount\%)}{100}$
$=\frac{250\times (100-10)}{100}=\frac{250\times 90}{100}=Rs.225$
Gain $=25\%$
$\therefore$ Cost price $=\frac{S.P\times 100}{100+gain\%}$
$=\frac{225\times 100}{100+25}=Rs.\frac{225\times 100}{125}=Rs.180$