Question

Tarun got 30% concession on the labelled price of an article and sold it for Rs.8,750 with 25% profit on the price he bought. What was the labelled price?

• A. Rs. 10,000
• B. Rs. 12,000
• C. Rs. 16,000
• D. Rs. 18,000

Hint:

To backtrack from selling price to cost price, reverse-engineer the profit calculation and then adjust for any concessions received on the original price.

Answer 1

The Correct Option is A

Step 1: Calculate the price Tarun paid after the concession and then the selling price.
Tarun sold the item at 25% profit, which means: \[ 1.25 \times \text{Price Paid} = 8750 \] \[ \text{Price Paid} = \frac{8750}{1.25} = 7000 \text{ rupees} \] Given a 30% concession, the buying price is 70% of the labelled price:
\[ 0.70 \times \text{Labelled Price} = 7000 \] \[ \text{Labelled Price} = \frac{7000}{0.70} = 10000 \text{ rupees} \]