An item is sold for ₹ 504 after allowing 20% discount and still a profit of 5% has been earned. The marked price is how much more than the cost price ?
An item is sold for ₹ 504 after allowing 20% discount and still a profit of 5% has been earned. The marked price is how much more than the cost price ?
Solution
✅ Correct Option: 3
Let the cost price be .
The selling price after a 20% discount is . Therefore, the marked price can be calculated as:
.
Since a profit of 5% is earned, we have:
.
Setting the selling price equal to the selling price formula gives:
.
Thus,
.
Now, the difference between the marked price and the cost price is:
.
The marked price is ₹ 150 more than the cost price.
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