Question
A seller marked an article 25% above its cost price and
sold it after giving a discount of Rs. 60. If the seller earned a profit of 20% in the transaction, then find the cost price (in Rs.) of the article.Solution
Let the cost price of the article = Rs. ‘100x’ Marked price of the article = 1.25 × (100x) = Rs. ‘125x’ Selling price of the article = Rs. ‘125x – 60’ According to the question, 1.20 × 100x = 125x – 60 Or, 125x – 120x = 60 Or, 5x = 60 Or, x = 12 Therefore, cost price of the article = 12 × 100 = Rs. 1200
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