Question

A shopkeeper allows a discount of 10% on the marked price of an article and still makes a profit of 20%. If the marked price is Rs. 200, what is the cost price?

• A. Rs. 150
• B. Rs. 160
• C. Rs. 170
• D. Rs. 180

Hint:

For discount and profit problems, calculate selling price after discount and use profit formula to find cost price.

Answer 1

The Correct Option is A

Marked price = Rs. 200, discount = 10%, so selling price = \( 200 \times 0.9 = 180 \) Rs. 
Profit = 20%, so if cost price = \( C \): 
\[ \frac{180 - C}{C} = 0.2 \Rightarrow 180 - C = 0.2C \Rightarrow 180 = 1.2C \Rightarrow C = \frac{180}{1.2} = 150 \] Thus, the answer is Rs. 150.