Question:

A dealer buys an article for Rs. 380. What price should he mark so that after allowing a discount of 5% he still makes a profit of 25% on the article?

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First compute target SP from profit on CP, then back out the MP using the discount.
Updated On: Aug 11, 2025
  • Rs. 500

  • Rs. 475

  • Rs. 95

  • Rs. 465

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The Correct Option is A

Solution and Explanation

Required selling price with $25%$ profit $=380\times1.25=475$.
If marked price $=M$, then after $5%$ discount, SP $=0.95M$.
So $0.95M=475\Rightarrow M=\dfrac{475}{0.95}=500$.
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