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Question
A dealer marks his goods 25% above the cost price and then allows 10% discount on it. What is the cost price of an article on which he gains Rs.575?
Solution
Let the C.P. of the goods = Rs.100
∴ M.P.
= Rs.100 + 25% of Rs.100
= Rs.100 + Rs.25
= Rs.125
Discount
= 10% of Rs.125
= `(10)/(100) xx 125`
= Rs.12.5
∴ S.P.
= M.P. - Discount
= Rs. (125 - 12.5)
= Rs.112.5
Gain
= S.P. - C.P.
= Rs.(112.5 - 100)
= Rs.12.5
When gain is Rs.12.5, C.P. = Rs.100
When gain is Rs.575, C.P.
= `(100 xx 575)/(12.5)`
= Rs.4600.
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