Question

A trader add 40% of the price he pays for
his goods to give the selling price. He later reduces the price of the goods,
in a sale, by 25%.

(i) If the trader buys an article for
Rs.640. Find its sale price.

(ii) Find the price paid by the trader for an
article whose sale price is Rs.1575.

Answer 1

CP cost price     
marked price MP = CP + 40/100 CP = 1.40 CP
price after discount DP or sale price SP =
           (100 - 25 )/100 * MP = 0.75 * 1.40 CP = 1.05 CP
profit he makes = = (1.05 CP - CP)*100 / 1 CP= 5 %

1)  CP = Rs 640          SP = 1.05 CP = 1.05 * 640 = rs 672

2)  SP = 1575         SP = 1.05 CP       
So  cost price CP =  SP /1.05  = 1575 /1.05 = rs 1500