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Q.

A cycle merchant allows 20% discount on the marked price of the cycles and still makes a profit of 20%. If he gains Rs 360 over the sale of one cycle, find the marked price of the cycle.


Sub Grade: 9


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a

2500

b

6400

c

8800

d

2700 

answer is D.

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Detailed Solution

We have gain on one cycle = Rs. 360
Gain = 20%
Gain% = Gain /CP x 100
20=360/CP x 100  ⇒ CP = Rs. 1800
SP= 100+Gain%/100 x CP ⇒SP = 12/100 x 1800= Rs. 2160
SP = Rs. 2160, Discount = 20%
MP= 100xSP/100-Discount %
MP = 100x2160/80 = Rs. 2700.
Hence, option 4 is correct.
                 
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