Question

A watch was sold on its marked price at a gain of 20% but after allowing 5% discount, there would have been RS 140 gained. At what price the shopkeeper purchased the watch?

Answer 1

Cost price = 1,000 rs

Explanation:

Given:

Gain % = 20%

Discount = 5%

Amount of gain = 140

Find:

Cost price

Assume

Cost price = x

Computation:

Market Price = x( 100% + 20% gain)

Market price = 1.2x

Discount = [1.2x][5%]

Discount = 0.06x

Sell Price = 1.2x - 0.06x

Sell Price =1.14x

Profit = Sell Price - Cost price

Profit = 1.14x - x

140 = 0.14 x

x = 1,000 rs

Cost price = 1,000 rs