Question 23

A merchant purchases a wristwatch for Rs.450 and fixes its list price in a such a waythat after allowing a discount of 10%, he earns a profit of 20%. Then the list price (in rupees) of the wristwatch is

Solution

Cost price (CP) Selling price (SP) List price (LP) Profit (P)

SP = $$ LP \times \frac{90}{100} $$

$$ \frac{SP - CP}{CP} \times 100 = P $$

Given CP = 450

$$ \frac{LP \times \frac{90}{100} - 450}{450} = \frac{1}{5} $$

$$ \frac{LP \times 90}{100 \times 450} -1 = \frac{1}{5} $$

solving, LP = 600

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