The marked price of an article is ₹x. After allowing a discount of 20% on the marked price, a shopkeeper gains ₹40. If his profit is $11\frac{1}{9}$%, then the value of x is:
Answer & explanation
Correct answer: option 1
11\(\frac{1}{9}\) % = \(\frac{1}{9}\)
Let CP = 9 unit
SP = 9 × \(\frac{10}{9}\) = 10 unit
MP = 10 × \(\frac{5}{4}\) = 12.5 unit
10 – 9 = 1 unit = 40
12.5 unit = 40 × 12.5 = 500