Question : A trader allows a discount of 15% on a trolley bag having a list price of Rs. 1360 and earns a profit of 15.6%. What is the cost price (in Rs.) of the trolley bag?
Option 1: 1000
Option 2: 1005
Option 3: 1050
Option 4: 1156
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Correct Answer: 1000
Solution :
Marked price = Rs. 1360
Discount = 15% of marked price = 15% of Rs. 1360
Selling price = Marked price – Discount = Rs. 1360 – 15% of Rs. 1360 = 85% of Rs. 1360
Profit = 15.6% of cost price
Selling price = cost price + profit = 115.6% of cost price
So, 85% of Rs. 1360 = 115.6% of the cost price
Cost price = $\frac{85 × 1360}{115.6}$ = $\frac{115600}{115.6}$ = Rs. 1000
Hence, the correct answer is 1000.
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