A shopkeeper pays 12% of the cost price as tax while purchasing an item whose cost is ₹ 500. He wants to earn a profit of 20% after giving a discount of 16% on the marked price. So, the marked price should be:
Given,
Cost of the item = ₹ 500
Tax% = 12%
Cost price of the shopkeeper = $$500+\frac{12}{100}\times500$$ = ₹ 560
Profit% = 20%
Selling price of the item = $$\frac{120}{100}\times560$$ = ₹ 672
Let the Marked price = M
Discount% = 16%
$$=$$> $$\frac{84}{100}\times \text{M}=672$$
$$=$$> $$\text{M}=800$$
$$\therefore\ $$Marked price = ₹ 800
Hence, the correct answer is Option A
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