A shopkeeper allows a discount of 4% on his article. If cost price of the article is ₹ 100 and he wants to get a profit of 20%. Then, its marked price will be
Correct Answer: ₹ 125
Explanation:
∵ Cost price of article = ₹ 100
∴ Selling price of the article for 20% profit
= 100 x (100 + 20)/100 = ₹ 120
Hence, marked price of the article for 4% discount
= 120 x 100/(100 - 4)
= 120 x 100/96
= ₹ 125
