A merchant marks his good at Rs. 300 and allows a discount of 25%. If he still gains 12.25%, then the cost price of article is :
Correct Answer: 200
Explanation:
Let's assume the cost price be (CP) = x
So selling price (SP) = 112.5x
Price marked on good ( MP ) = 300 According to question MP - 25% = SP
∴ x = 200, hence the cost price be Rs. 200.
