A book publisher offers a novel to a bookstore at a 30% discount on the cover price. However, they charge an additional 5% on the discounted price for shipping. The bookstore sells the novel for ₹1620 more, earning a profit of 40%. What was the original cover price of the novel?

Correct option is A

Given :

Discount offered = 30% 

Additional shipping = 5% of discounted price 

Bookstore earns 40% profit, and this profit amount = ₹1620

Formula Used :

Profit = Selling Price - Cost Price

Solution:

Let the original cover price = C

Discount offered = 30% → discounted price = 0.7C

Additional shipping = 5% of discounted price →

Cost price of bookstore (CP)
CP = 0.7C$$\times 1$$​​.05 = 0.735C

Profit = 40% of CP

0.4$$\times$$​CP = 1620
CP =$$\frac{1620}{0.4}$$​= 4050

Use CP to find cover price

0.735C = 4050
C $$= \frac{4050}{0.735}$$​​
C = 551$$0.20\ (\text{approx})$$​​
Original cover price = ₹5510.20