csatmedium
A person allows a 10% discount for cash payment from the marked price of a toy and still he makes a 10% gain. What is the cost price of the toy which is marked Rs. 770 ?
- A.Rs. 610
- B.Rs. 620
- C.Rs. 630
- D.Rs. 640
▶ Answer & Explanation
Correct answer: C. Rs. 630
The marked price (MP) is Rs. 770. A 10% discount means the selling price (SP) is 90% of MP. Thus, SP = 0.90 * 770 = Rs. 693. A 10% gain means the SP is 110% of the cost price (CP). Therefore, CP = SP / 1.10 = 693 / 1.10 = Rs. 630.
Source: UPSC csat 2016