A shopkeeper is offering 10% discount on a shirt marked at ₹4,000 and still earns a profit of 20%. What is the cost price (in ₹)?

Correct option is D

Given:

Discount =10%

Marked Price = ₹4000

Profit =20%

Formula Used:

Discount = $$\frac{Discount}{Marked \ Price} \times 100$$​​

Discount =Marked Price - Selling Price

Solution:

Marked price =₹4000

Discount = 10%  of 4000 = ₹400

Selling Price = 4000-400 =3600

Let the Cost Price be x

Profit = 20% of x = 0.2x

Selling Price = x +0.2x  = 1.2x

Now 1.2x =3600

​$$x= \frac{3600}{1.2} =₹3000$$​​

Alternative Method:

​$$CP = 4000 \times \frac{90}{100}\times \frac{100}{120}$$​

= ₹3000