Question

Choose the correct answer from the alternatives given :
A merchant purchases a wrist watch for Rs. 450 and fixes its list price in such a way that after allowing a discount of 10%, he earns a profit of 20%. Find the list price of the wrist watch.

• A. Rs. $495$
• B. Rs. $540$
• C. Rs.$600$
• D. Rs. $585$

Answer 1

The correct option is C Rs.$600$

formula, MP (1 - %d) = CP (1 + %g) = SP

$\Rightarrow MP(1-\frac{10}{100})=450(1+\frac{20}{100})$

$\Rightarrow MP\left(\frac{90}{100}\right)=450\left(\frac{120}{100}\right)$

:. MP = $\frac{450\times 120}{90}$ = Rs. 600