General Aptitude TestNumerical AbilityProfit and Loss

David purchased an item and marked his price up by 10%. He sold the s…

David purchased an item and marked his price up by 10%. He sold the same item by giving a discount of 5% and he made a profit ₹12.87. What is the actual cost price of the item?

Answer & explanation

Correct answer: option 3

Let the cost price of the article = 100

Markup = 10%

Then the marked price of the article = 110

Discount = 5%

So the selling price = 95% of the marked price

So the SP = 95% of 110 = 104.5

So the profit = 104.5 - 100 4.5

4.5x = 12.87

x = \(\frac{12.87}{4.5}\) = 2.86

100x = ₹286