Marked price of an article is Rs 3000. If there is a profit of 25% after giving 20% discount, then what is the cost price (in Rs) of the article?

Options

A. 1920
B. 1840
C. 1760
D. 2150

Answer

To solve the problem step by step, let's follow the given information:

1. **Identify the Marked Price (MP)**:
The marked price of the article is given as Rs 3000.

2. **Calculate the Discount**:
The discount given is 20% of the marked price.
\[ \text{Discount} = \text{MP} \times \frac{20}{100} = 3000 \times 0.20 = 600 \text{ Rs} \]

3. **Calculate the Selling Price (SP)**:
The selling price is calculated by subtracting the discount from the marked price.
\[ \text{SP} = \text{MP} - \text{Discount} = 3000 - 600 = 2400 \text{ Rs} \]

4. **Understand the Profit Percentage**:
We know that there is a profit of 25%. This means the selling price is 125% of the cost price (CP).
\[ \text{SP} = \text{CP} + \text{Profit} = \text{CP} + 0.25 \times \text{CP} = 1.25 \times \text{CP} \]

5. **Set Up the Equation**:
Now we can set up the equation using the selling price we calculated.
\[ 2400 = 1.25 \times \text{CP} \]

6. **Solve for Cost Price (CP)**:
To find the cost price, we rearrange the equation:
\[ \text{CP} = \frac{2400}{1.25} \]
\[ \text{CP} = 2400 \div 1.25 = 2400 \times \frac{4}{5} = 1920 \text{ Rs} \]

Thus, the cost price of the article is **Rs 1920**.