A rice is marked at Rs.1500 at big bazar. A
seller allows a discount of 7% and still
gains 20% profit. Then the cost price of the
rice of Rs.
• 1200
1700
1000
1162.50
Answers
Discount is defined as the amount of rebate given on the label price (marked price) of an article. It is given by merchants/shopkeepers for attracting customers for increasing their sales.
Discount = Marked Price – Selling Price
Discount percentage = [(Discount)/(Marked price)]× 100. Before going on to solve more examples, let us recall all the formulas that we have seen thus far.
What is List Price?
Main Concepts and Results
Discount is a reduction given on marked price.
Discount = Marked Price – Sale Price (S.P.)
Discount can be calculated when a discount percentage is given.
Discount = Discount % of Marked Price
Additional expenses made after buying an article are included in the cost price and are known as overhead expenses.
cost price = buying price + overhead expenses
Sales Tax is charged on the sale of an item by the government and is added to the Bill Amount.
Sales tax = Tax% of sale amount.
These days, however, the selling prices (known as MRP) include the tax known as VAT (Value Added Tax).
The interest compounded annually is the interest calculated on the previous year’s amount A, (A = P + I).
The time period after which the interest is added each time to form a new principal is called the conversion period.
When the interest is compounded half-yearly, there are two conversion periods in a year of duration 6 months each.
A) Rs. 160 B) Rs 180 C) Rs 200 D) Rs 240
Answer: We have the Marked Price = Rs 280. Also we have the Discount = 20% of Rs 280.
Thus we can write it as = (20/100) × 280 = Rs 56. So the selling price = Rs (280 – 56) = Rs 224.
Let the cost price be Rs 100. Profit = 12% of Rs 100 which is = Rs 12.
So selling price = Rs (100 + 12) = Rs 112. Now let us see further:
If the selling price is Rs 112, cost price = Rs 100. If the selling price is Rs 224, cost price = Rs (100/224) × 112 which is = Rs 200. Hence the answer is C) Rs 200.
Example 2: A bicycle marked at Rs 1,500 is sold for Rs 1,350. What is the percentage of the discount?
A) 8% B) 10% C) 12% D) 14.3%
Answer: Given : Marked Price = Rs 1500, and Selling Price = Rs 1350.
Amount of discount is = Marked Price – Selling Price. In other words we can say that = (1500 – 1350) = Rs 150.
Discount for Rs. 1500 =Rs 150
Therefore, the Discount for Rs 100 = (150/1500) × 100 = 10%
Thus, the Percentage of discount = 10% and the correct option is B) 10%.
Example 3: An almirah is sold at Rs 5,225 after allowing a discount of 5%. Find its marked price.
A) Rs. 3500 B) Rs. 4300 C) Rs. 5000 D) Rs. 5,500
Answer: Let us solve this using the following method:
The discount is given in percentage. Hence, the M.P. is taken as Rs 100. Rate of discount = 5%.
Amount of discount = (5/100)×100 = Rs 5.
Selling Price = M.P. – Discount = 100 – 5 = Rs. 95. If S.P. is Rs 95, then M.P. is Rs. 100. When S.P. is Rs. 5225, M.P. = Rs. (100/95) × 5225. Therefore the M.P. of the almirah = Rs. 5,500 and hence the correct option is D) Rs. 5,500.
Second Method: We can also use the following method. This is the easier and the faster way.
S.P. = Rs 5225 and Discount = 5%. Also, M.P. =?. Now we have:
M.P. = [100/(100 – Discount%)] × S.P. = [100/(100 – 5)] × 5225
In other words we may also write: Rs. (100/95) × 5225 = Rs. 5,500.
Example 4: A shopkeeper allows a discount of 10% to his customers and still gains 20%. Find the marked price of an article which costs Rs 450 to the shopkeeper.
A) Rs. 800 B) Rs 400 C) Rs 600 D) Rs 379
Answer: Let us use the formula method first:
Discount = 10%, Gain = 20%, C.P. = Rs. 450, M.P. = ?
M.P. = [(100 + Gain%)/(100 – Discount%)] × C.P.
Thus we have = [(100 + 20)/(100 – 10)]×450 = Rs. 600 and hence the correct answer is C) Rs 600.