The marked price of an article is ₹x. After allowing a discount of 20% on the marked price, a shopkeeper gains ₹40. If his profit is $$11\frac{1}{9}\%$$, then the value of x is:

Let's assume the cost price of the article is ₹900y.

If his profit is $$11\frac{1}{9}\%$$.

Profit = 900y of $$11\frac{1}{9}\%$$

= $$900y\times\frac{100}{900}$$

= 100y

A shopkeeper gains ₹40.

So 100y = 40

y = 0.4

Selling price = cost price + profit

= 900y + 100y

= 1000y

= $$1000\times0.4$$

= 400

20% discount was allowed on marked price of an article which is ₹x.

x of (100-20)% = 400

x of 80% = 400

0.8x = 400

x = ₹500