Question

A shopkeeper buys an article for Rs 180. After allowing a discount of 10% on his marked price, he wants to earn a profit of 20%. His marked price must be

• A. Rs 210
• B. Rs 240
• C. Rs 270
• D. Rs 300

Answer 1

The correct option is B Rs 240

Given,

Cost price of an article, $CP=$ Rs $180$
Profit or gain = $20$ %
Discount on the marked price of an article $=10$%

Marked price of an article, $MP=?$

Let the marked priice of an article be $x$.

Discount on the marked price on an article $=x-0.10x$

$=0.9x$

$\therefore$ Selling Price of an article is, $SP=0.9x$

We know that,

$\frac{SP-CP}{CP}=Gain$%

Put $SP=0.9x$, $CP=180$, and $Gain=20$ %

$\frac{0.9x-180}{180}=20$%

$\frac{0.9x-180}{180}=\frac{20}{100}$

$\frac{0.9x-180}{180}=\frac{1}{5}$

$\frac{0.9x-180}{36}=1$

$0.9x=36+180$

$0.9x=216$

$x=\frac{216}{0.9}$

$x=240$

$\therefore$ Marked Price of an article is Rs 240.