Question : A trader allowed a discount of 20% on a trolley bag having a list price of Rs. 4,296 and earns a profit of 20%. What is the cost price of the trolley bag?
Option 1: Rs. 2,572
Option 2: Rs. 2,500
Option 3: Rs. 3,026
Option 4: Rs. 2,864
Correct Answer: Rs. 2,864
Solution :
Given: A trader allowed a discount of 20% on a trolley bag having a list price of Rs. 4,296 and earns a profit of 20%.
Selling price = 20% discount on 4296 =
Let the cost price of the trolley bag be Rs.
According to the question,
⇒
⇒
Hence, the correct answer is Rs. 2,864.