A shopkeeper marks a bag at ₹3,000 and offers a discount of 25%. He still…
2026
A shopkeeper marks a bag at ₹3,000 and offers a discount of 25%. He still makes a profit of 20%. What is the cost price of the bag?
Answer: B. ₹1,875 — ConceptA discount changes the marked price into the selling price, while a profit percentage relates the selling price to the cost price. In general, SP = MP…
- A.
₹1,925
- B.
₹1,875
- C.
₹1,800
- D.
₹1,600
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Show answer & explanation
Correct answer: B
Concept
A discount changes the marked price into the selling price, while a profit percentage relates the selling price to the cost price. In general, SP = MP × (1 − discount rate) and SP = CP × (1 + profit rate).
Application
Apply the 25% discount: SP = ₹3,000 × (1 − 25/100) = ₹3,000 × 0.75 = ₹2,250.
Use the 20% profit relation: ₹2,250 = CP × (1 + 20/100) = CP × 1.20.
Solve for cost price: CP = ₹2,250 ÷ 1.20 = ₹1,875.
Cross-check
Starting from the cost price: ₹1,875 × 1.20 = ₹2,250.
Starting from the marked price: ₹3,000 × 0.75 = ₹2,250.
Both calculations produce the same selling price, so the cost price is ₹1,875.