Marked price to meet target profit with a discount: A shopkeeper allows a 4% discount on an article. If the cost price is ₹100 and he wants a profit of 20%, what should be the marked price?

Introduction / Context:
We are given CP and desired profit, along with a fixed discount on MP. Convert the desired profit to the needed SP, then invert the discount relation to obtain MP.

Given Data / Assumptions:
CP = ₹100, desired profit = 20% ⇒ SP = ₹120; discount = 4% on MP ⇒ SP = 0.96 * MP.

Concept / Approach:
Set 0.96*MP = 120 and solve for MP directly: MP = 120/0.96.

Step-by-Step Solution:

Verification / Alternative check:
Check: MP 125 with 4% off gives SP 120, which is a 20% gain on CP 100.

Why Other Options Are Wrong:
96 and 120 confuse CP or SP with MP; 130 overshoots and would give more than 20% profit; 124 doesn’t satisfy 0.96*MP = 120.

Common Pitfalls:
Applying the discount to CP instead of MP, or computing profit on MP rather than CP.

Final Answer:
₹ 125