A dealer sells an article at a discount of 5% on the marked price. If the marked price is 20% above the cost price and the article was sold for ₹2,280, then the cost price would be:
- A₹2,500
- B₹2,000
- C₹3,500
- D₹3,000
Solution & Step-by-step Explanation
Let the Cost Price (CP) be ₹c.
The Marked Price (MP) is 20% above the CP:
MP=c×(1+
100
20
)=1.2c
The Selling Price (SP) is obtained after a 5% discount on the MP:
SP=MP×(1−
100
5
)=1.2c×0.95=1.14c
Given that SP=₹2,280:
1.14c=2280
c=
1.14
2280
=
114
228000
=2000
Therefore, the cost price is ₹2,000.
The Marked Price (MP) is 20% above the CP:
MP=c×(1+
100
20
)=1.2c
The Selling Price (SP) is obtained after a 5% discount on the MP:
SP=MP×(1−
100
5
)=1.2c×0.95=1.14c
Given that SP=₹2,280:
1.14c=2280
c=
1.14
2280
=
114
228000
=2000
Therefore, the cost price is ₹2,000.