A trader sells an item for Rs. 516.60 after offering a discount of 18% on its list price. Had he not given the discount, he would have earned a profit of 26%. What is the cost price (in Rs.) of the item?
- A525
- B520
- C500
- D450
Solution & Step-by-step Explanation
1. Find the List Price (Marked Price):
Selling Price=List Price×(1−
100
Discount %
)
516.60=List Price×0.82
List Price=
0.82
516.60
=Rs. 630
2. Find the Cost Price:
If no discount is given, the item is sold at the List Price, making a 26% profit.
List Price=Cost Price×(1+
100
26
)
630=Cost Price×1.26
Cost Price=
1.26
630
=Rs. 500
Selling Price=List Price×(1−
100
Discount %
)
516.60=List Price×0.82
List Price=
0.82
516.60
=Rs. 630
2. Find the Cost Price:
If no discount is given, the item is sold at the List Price, making a 26% profit.
List Price=Cost Price×(1+
100
26
)
630=Cost Price×1.26
Cost Price=
1.26
630
=Rs. 500