Question

A cycle dealer offers a discount of 10% and still makes a profit of 26%. What is the actual cost to him of a cycle whose marked price is Rs. 840?

Answer 1

Given,

Marked price (MP) on cycle = Rs 840

Discount = 10%

Discount = (MP × Discount %)/100

= (840×10)/100

= Rs 84

SP = MP – Discount

= 840 – 84

= Rs 756

Given, he makes a profit of 26% additionally

So, by using the formula,

CP = 100 / (100 + Gain %) × SP

= 100 / (100 + 26) × 756

= 100/126 × 756

= 600

∴ Actual cost of the cycle is Rs 600.