SOLUTION: A dealer allows a discount of 20% on the marked price of the goods and still makes a profit of 25%. If his gain over sale is ₹150 find the marked price.

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Question 1096396: A dealer allows a discount of 20% on the marked price of the goods and still makes a profit of 25%. If his gain over sale is ₹150 find the marked price.
Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!

The profit of ₹150 is 25% of the cost, so the cost is ₹600.

Then the selling price is the cost plus the profit, or ₹750.

The selling price is 20% off the marked price; i.e., it is 80% or 4/5 of the marked price. So the marked price is 5/4 of the selling price:
750%2A%285%2F4%29+=+3750%2F4+=+937.50

The marked price is ₹937.50