Mr. Rai bought a radio for Rs 2,000 and fixed its price so that after giving 20% discount, he made 10% profit. Find the fixed price of the radio.

Solution:

For a radio,

Cost Price (CP) = Rs 2000

Discount percentage (d%) = 20%

Profit Percentage (P%) = 10%

We know,

The fixed price is the marked price.

And,

Selling Price = $CP(1 + \frac{P%}{100})$

Selling Price = $MP(1 - \frac{d%}{100})$

From above two formulae, we get,

$CP ( 1 + \frac{P%}{100} = MP(1 - \frac{d%}{100})$

$or, 2000 ( 1 + \frac{10}{100}) = MP ( 1 - \frac{20}{100}$

$or, 2000 × \dfrac{110}{100} = MP × \dfrac{80}{100}$

$or, 2200 = MP × \dfrac{80}{100}

$or, MP = 2200 × \dfrac{100}{80}$

$\therefore MP = Rs 1760$

Hence, the required fixed price of the radio is Rs 1760.

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