A merchant marks his goods at Rs. 600 and allows a discount of 25%. If he still gains 11.11%, then the cost price of the article is:
Question
A merchant marks his goods at Rs. 600 and allows a discount of 25%. If he still gains 11.11%, then the cost price of the article is:
Solution
Step 1: Calculate the selling price after discount
The merchant allows a discount of 25% on the marked price of Rs. 600.
So, the discount amount = 25/100 * 600 = Rs. 150
Therefore, the selling price after discount = Marked price - Discount = 600 - 150 = Rs. 450
Step 2: Calculate the cost price
The merchant still gains 11.11% on the cost price.
So, if 111.11% (100% cost price + 11.11% gain) of the cost price is equal to the selling price, we can set up the following equation to find the cost price:
111.11/100 * Cost price = Selling price
Substituting the selling price from step 1:
111.11/100 * Cost price = 450
Solving for Cost price:
Cost price = 450 / (111.11/100) = Rs. 405
So, the cost price of the article is Rs. 405.
Similar Questions
A shopkeeper gives 25% discount on an article and makes a profit of 10%. If the cost price of the article is Rs 300 then, what is the marked price?
An article costs Rs.600.What should be the marked price of an article so that after 10% discount,the trader makes 20% profit?Rs.800Rs.950Rs.1100Rs.1040
A person sells a book for Rs.11.He gains as many percent as its cost price in rupees.What is the cost price?
An article costs Rs. 500 and the marked price is mentioned as Rs. 800. What is the profit % for the seller if he sells and offers a discount of 10% on the marked price?
A shopkeeper marked an article 40% above its cost price and allowed a discount of 20%. Had he marked the article 50% above its cost price and allowed a discount of 12%, the selling price would have been Rs. 90 more than the earlier selling price. Find 130% of the cost price.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.