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Question
A dealer is selling an article marked Rs.2000 at a discount of 20%. Find the selling price and the cost price of if he makes a profit of 25%.
Solution
Given, M.P. of an article = Rs.2000
Discount = 20%
`"S.P."/"M.P." = 1 - "discount"/(100)`
⇒ `"S.P."/(2000) = 1 - (20)/(100)`
⇒ S.P. = `(80)/(100)` x Rs.2000
= Rs.1600
∴ Selling price of the article = Rs.1600
Now, gain = 25%
`"S.P."/"C.P." = 1 + "gain"/(100)`
⇒ `(1600)/"C.P." = 1 + (25)/(100)`
⇒ C.P. = `1600 xx (100)/(125)`
= Rs.1280.
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