Question

An article was marked at ₹11,500. A discount of 25% was offered, resulting in a profit of 15%. What is the cost price of the article?

• A. ₹7,700
• B. ₹7,500
• C. ₹7,400
• D. ₹7,200

Answer 1

Answer:

B. ₹7,500

The cost price of the article is ₹7,500.

There is a direct relationship between Mark Price (MP) and Cost Price (CP):
$\frac{\text{CP}}{\text{MP}} = \frac{100 - \text{Discount}\%}{100 + \text{Profit}\%}$

1. Substitute the given values into the formula:
   $\frac{\text{CP}}{11500} = \frac{100 - 25}{100 + 15}$
   $\frac{\text{CP}}{11500} = \frac{75}{115}$

2. Solve for CP:
   $\text{CP} = 11500 \times \frac{75}{115}$
   $\text{CP} = 100 \times 75$
   $\text{CP} = 7500$