SOLUTION: The marked price of an article is Rs 720. A shopkeeper gives a discount of 20% and still makes a profit of 20%. What is the cost price (in Rs) of the article? 1) 480 2) 560 3)

Algebra ->  Finance -> SOLUTION: The marked price of an article is Rs 720. A shopkeeper gives a discount of 20% and still makes a profit of 20%. What is the cost price (in Rs) of the article? 1) 480 2) 560 3)      Log On


   

Question 1102224: The marked price of an article is Rs 720. A shopkeeper gives a discount of 20% and still makes a profit of 20%. What is the cost price (in Rs) of the
article?
1) 480
2) 560
3) 450
4) 600
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
Price is 720, and 20% off is 720*0.80 or 576, the sales price
That is a profit of 20%, so 576 is 1.2 times the cost price
576/1.2=480 ANSWER.
1)
profit is increase/original amount=20%. That is 96/480 so the selling price is 576.
The discount is taken from the original price as well, and that is 720.