General Aptitude Question on Profit and Loss

Question

An item is sold for 504 after allowing a 20% discount. If the shopkeeper gains 5%, then the cost price of the item is:

Answer 1

Solution

Let the cost price be $x$ . The selling price is $x + 0.05x = 1.05x$ . The marked price after a 20% discount is $504 = 0.8 \times \text{Marked Price}$ . Solving for $x$ gives the cost price as 150.