Question 56

A merchant purchases a wrist watch for 450 and fixes its list price in such a way that after allowing a discount of 10% he earns a profit of 20%. Then the list price of the watch is

Solution

Cost price of the watch = Rs. 450

Profit % = 20%

=> Selling price = $$450+(\frac{20}{100}\times450)$$

= $$450+90=Rs.$$ $$540$$

Discount % = 10%

=> List price = $$\frac{540}{(100-10)}\times100$$

= $$6\times100=Rs.$$ $$600$$

=> Ans - (A)

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