Question

A shopkeeper allows his cusotmers 20% off on the MP of a goods& still gets a profit of 25% what is the cost of article marked Rs 500

Answer 1

The allowed discount percentage=20%.
⇒Discount =Rs. $\frac{20}{100}$ * MP
⇒$\frac{20}{100}$ *500
⇒Rs.100
SP=MP-Discount
=Rs.500-Rs.100
=Rs.400
Now , we have to find the C.P. of the article (price at which shopkeeper brought it)
Let the C.P. be x.
Profit=25% of x =$\frac{25}{100}$ * x
=$\frac{x}{4}$
In case of a profit,
S.P.=C.P.+ Profit  
Given , Rs.400=Rs. x + Rs$\frac{x}{4}$
or, 400 = $\frac{(4x+x)}{4}$
or, 400 =$\frac{5x}{4}$
or, x=400 * $\frac{4}{5}$ (cross multiplication)
or ,x=320
Ans:The Market Price is Rs.500 ; the Selling Price is Rs.400 , the Cost Price is Rs.320.

Answer 2

Let cost price be Rs. x

So, Selling price = Rs.(500-20/100*500) = Rs. 400

So, x + 25% of x = 400
or, 5x/4 = 400
or, x = 320

So, cost price = Rs. 320