Television purchase and resale: Rita bought a TV at 20% discount on the labelled price and later sold it for ₹16,800, making a profit of ₹800. What was the labelled price?

Difficulty: Easy

Correct Answer: ₹ 20000

Explanation:


Introduction / Context:
We relate cost price (after discount) to selling price and profit to recover the labelled (marked) price. The chain is: Labelled Price → 20% off → Cost Price → add profit → Selling Price.


Given Data / Assumptions:

  • Buying discount = 20% on labelled price L ⇒ Cost Price (CP) = 0.80L
  • Selling Price (SP) = ₹16,800
  • Profit = ₹800 ⇒ CP = SP − Profit = ₹16,000


Concept / Approach:
Equate CP from both descriptions to solve for L: 0.80L = 16,000 ⇒ L = 20,000.


Step-by-Step Solution:
CP = SP − Profit = 16800 − 800 = 160000.80L = 16000 ⇒ L = 16000 / 0.80 = 20000


Verification / Alternative check:
20% of ₹20,000 is ₹4,000; CP = ₹16,000. Selling at ₹16,800 gives ₹800 profit—consistent.


Why Other Options Are Wrong:
They either understate or overstate the implied CP or profit when back-checked.


Common Pitfalls:
Applying 20% to SP or mixing up profit addition/subtraction direction.


Final Answer:
₹ 20000

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