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At what price should shopkeeper mark a radio that costs him Rs. 1200 In order that he may offer a discount of `20 %` on the marked price and still make a profit of `25 %` ?

A

Rs. 1675

B

Rs. 1875

C

Rs. 2025

D

Rs. 1900

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The correct Answer is:
To solve the problem, we need to determine the marked price (MP) of the radio so that after giving a discount of 20%, the shopkeeper still makes a profit of 25% on the cost price of Rs. 1200. ### Step-by-Step Solution: 1. **Calculate the Selling Price (SP) for a 25% Profit:** - The cost price (CP) of the radio is Rs. 1200. - To find the selling price that includes a 25% profit, we use the formula: \[ SP = CP + \left(\frac{Profit \%}{100} \times CP\right) \] - Here, \( Profit \% = 25 \). - Thus, \[ SP = 1200 + \left(\frac{25}{100} \times 1200\right) = 1200 + 300 = 1500 \] 2. **Determine the Marked Price (MP) Considering the Discount:** - The shopkeeper offers a discount of 20% on the marked price. - The selling price (SP) after the discount can be expressed as: \[ SP = MP - \left(\frac{Discount \%}{100} \times MP\right) \] - Here, \( Discount \% = 20 \). - This can be rewritten as: \[ SP = MP \times \left(1 - \frac{20}{100}\right) = MP \times 0.8 \] 3. **Set the Two Expressions for SP Equal to Each Other:** - From step 1, we found \( SP = 1500 \). - Therefore, we set the two expressions for SP equal: \[ 1500 = MP \times 0.8 \] 4. **Solve for the Marked Price (MP):** - Rearranging the equation gives: \[ MP = \frac{1500}{0.8} = 1875 \] ### Final Answer: The marked price at which the shopkeeper should mark the radio is **Rs. 1875**.
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