A merchant sets the price of an item Rs. 6,000 higher than its original cost and offers a discount of 16(2/3) %. As a result, the merchant makes a 25% profit. Determine the original cost of the item.
Let, the cost price of the item be Rs. '100x'. ATQ, 1.25 X 100x = (5/6) X (100x + 6000) Or, 125x X 6 = 500x + 30000 Or, 750x - 500x = 30000 Or, 250x = 30000 Or, x = (30000/250) = 120 So, the cost price of the item = 100x = 100 X 120 = Rs. 12,000
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