A mark up the good 80% above the cost price and give a discount of Rs 160. If he gets a profit of Rs 200, the find the cost price of the article (in Rs).
Correct Answer :
450
Solution :
To find the cost price of the article, we can set up the relationships between the Cost Price (CP), Marked Price (MP), and Selling Price (SP) step-by-step.
Let the cost price of the article be (in Rs).
Step 1: Determine the Marked Price (MP)
The article is marked up by 80% above the cost price. Therefore, the marked price is:
Step 2: Determine the Selling Price (SP)
A discount of Rs 160 is given on the marked price. The selling price is calculated as:
Step 3: Relate Selling Price to Profit
The profit obtained is Rs 200. Profit is the difference between the selling price and the cost price:
Substituting the values we know into this equation:
Step 4: Solve for the Cost Price (CP)
Simplify the right side of the equation:
Add 160 to both sides of the equation:
Divide both sides by 0.8:
Therefore, the cost price of the article is Rs 450.
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