Question

An article, after allowing a discount of 20 % on its marked price, was sold at a gain of 20 %. Had it been sold after allowing 25 % discount, there would have been a gain of Rs 125. Find the marked price of the article.

A) Rs 750
B) Rs 800
C) Rs 850
D) Rs 900

Answer 1

The marked price of the article can be found using the given information about discounts and gains. By setting up equations and solving them, we can determine that the marked price is Rs 800.

Step-by-step explanation:

Let's assume the marked price of the article is 'M'.

According to the given information, after allowing a discount of 20% on the marked price, the article is sold at a gain of 20%. This means the selling price (SP) is 120% of the cost price (CP). So, 120% of CP = SP.

Similarly, if the article is sold after allowing a 25% discount, there would have been a gain of Rs 125. This means the selling price (SP) is 125% of the cost price (CP). So, 125% of CP = SP.

Now, we can solve these equations to find the marked price (M).

Let's solve the first equation:

1. 120% of CP = SP
2. CP = M
3. 120% of M = SP
4. M = SP/120%

Solving the second equation:

1. 125% of CP = SP
2. CP = M
3. 125% of M = SP
4. M = SP/125%

Since we are looking for the marked price (M) in both equations, we can set them equal to each other:

SP/120% = SP/125%

Therefore, the marked price of the article is Rs 800 (Option B).