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Question
A shopkeeper allows 20% discount on his article. What price must be mark on an article, which costs him Rs.1750, to make a profit 20%?
Solution
Let the marked price be Rs. x
Discount = 20%
∴ S.P. = M.P. - discount
= x - 20% of Rs. x
= Rs.`(80)/(100)x`
Given, C.P. = Rs.1750
Gain = 20%
`"S.P."/"C.P." = 1 + "Gain"/(100)`
⇒ `((80)/(100)x)/(1750) = 1 + (20)/(100)`
⇒ x = `(120/100) xx 1750 xx (100)/(80)`
= Rs.2625
∴ The marked price = Rs.2625.
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