A shopkeeper marks an article 20% above its cost price and allows a discount such that he gains 10% on the cost price. If the marked price is Rs 600, then find the selling price (in Rs) of the article.

The correct answer is 550.

Step-by-Step Explanation:

Step 1: Understand the given values

Marked Price (MP) of the article = Rs 600
The shopkeeper marks the article 20% above the Cost Price (CP).
The gain (profit) percent on the cost price = 10%

Step 2: Find the Cost Price (CP)

Since the Marked Price is 20% above the Cost Price, we can write:

$\text{MP}=\text{CP}\times (1+\frac{20}{100})$

$\text{MP}=\text{CP}\times 1.20$

Substituting the given Marked Price (MP = 600):

$600=\text{CP}\times 1.20$

$\text{CP}=\frac{600}{1.20}=500$

So, the Cost Price of the article is Rs 500.

Step 3: Calculate the Selling Price (SP)

The shopkeeper makes a gain of 10% on the Cost Price. The Selling Price is given by:

$\text{SP}=\text{CP}\times (1+\frac{\text{Gain \%}}{100})$

Substituting CP = 500 and Gain % = 10%:

$\text{SP}=500\times (1+\frac{10}{100})$

$\text{SP}=500\times 1.10=550$

Thus, the selling price of the article is Rs 550.