The ratio of the cost price to the marked price of an article is 4 ∶ 7. A discount of 25% is given on the marked price and the shopkeeper made a profit of ₹50. Find the cost price of the article.
Answer & explanation
Correct answer: option 1
\(\frac{CP}{MP}\) = \(\frac{100 - D}{100 + P}\) = \(\frac{100 - 25}{100 + P}\) = \(\frac{4}{7}\)
from this, P = 31.25%,
⇒ 31.25% of CP = Rs. 50
⇒ CP = Rs. 160