Question

A shopkeeper offers a 10% discount on the marked price of his articles and still makes profit of 20% . What is the actual cost of the article marked Rs.500 for him?
A. Rs.350
B. Rs.375
C. Rs.400
D. Rs.300

Answer 1

Hint – In order to solve this problem, find ten percent of the marked rate , then find twenty percent of the rate sailed to get the profit that the shopkeeper makes and use the formula of cost price.

The marked rate of the articles is Rs.500
If the shopkeeper offer 10 % discount on the articles, so 10% of 500 is,
$\dfrac{{10 \times 500}}{{100}} = 50$

Therefore the rate at which the shopkeeper sold the articles = 500 - 50 = 450 (Selling price)
Therefore the shopkeeper got Rs.450.
But, in the question it is said that he still makes a profit of 20% of what he sold.
Therefore, we can say that if a 10% discount will decrease the marked price by Rs.50 then a 20 % discount will decrease the rate by Rs.100.

So, the shopkeeper makes a profit of Rs.100 (Profit)
Therefore the cost price of the item is,
Cost price = Selling price – profit.
Cost price = 450 – 100
Cost price = 350 .
Therefore the cost price of the articles is Rs.350

Hence the correct option is A.

Note – In these types of problems of finding the actual rate , firstly obtain the percentage of the data as per question. As here we have to find the actual rate of the articles, so here we have used the formula cost price = selling price – profit then we have got the answer to this question.