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Question
A shopkeeper allows 20% discount on the advertised prices of his goods and still makes a profit of 12% on his cost price. Calculate the advertised price of an article on which he gains Rs.135.
Solution
Let the C.P. of the goods = Rs.100
Profit = 12%
∴ S.P.
= Rs.100 + 12% of Rs.100
= Rs.100 + Rs.12
= Rs.112
Discount = 20%
`"S.P."/"M.P." = 1 - "D"/(100)`
⇒ `(112)/"M.P." = 1 - (20)/(100)`
⇒ M.P. = `(112 xx 100)/(80)`
= Rs.140
Gain
= S.P. - C.P.
= Rs. (112 - 100)
= Rs.12
When gain is Rs.12, M.P. = Rs.140
When gain is Rs.135, M.P.
= `(140 xx 135)/(12)`
= Rs.1575.
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