A dealer of scientific instruments allows 20% discount and still makes a profit of 25%. If his gain on sale of an instrument is ₹ 150, then find the marked price of the instrument.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹ 937.50
The profit per cent is worked out on the cost price, and the discount is taken off the marked price. So the gain gives the cost price, the cost price gives the selling price, and the selling price gives the marked price.
25% of the cost price \(=150\), so cost price \(\displaystyle =\frac{150\times100}{25}=600\)
Selling price \(=600+150=750\)
After a 20% discount the selling price is 80% of the marked price: \(0.8\times\) MP \(=750\)
Marked price \(\displaystyle =\frac{750}{0.8}=937.50\)