David purchased an item and marked his price up by 10%. He sold the same item by giving a discount of 5% and he made a profit ₹12.87. What is the actual cost price of the item?

Let's assume the cost price of the item is '100y'.

David purchased an item and marked his price up by 10%.

MRP = 100y of (100+10)%

= 100y of 110%

= $$100y\times\frac{110}{100}$$

= 110y

He sold the same item by giving a discount of 5%.

Selling price of the item = 110y of (100-5)%

= 110y of 95%

= $$110y\times\frac{95}{100}$$

= 104.5y

he made a profit ₹12.87.

profit = selling price - cost price

12.87 = 104.5y - 100y

4.5y = 12.87

y = 2.86 

Actual cost price of the item = 100y

= $$100\times2.86$$

= 286