An item is sold for ₹504 after allowing 20% discount and still a profit of 5% has been earned. The marked price is how much more than the cost price?

₹150

The correct answer is Option (3) → ₹150

We have,

Discount = 20%

Profit = 5%

Selling price = 504

According to the question,

Let the mark price = x

Now, x × \(\frac{80}{100}\)  = 504

x = 630

Now the cost price ,

CP × 105% = 504

CP = 480

The marked price is 630 - 480 = 150 more than the cost price.