The marked price of a jacket is ₹1,050. The shopkeeper earns a profit of 25% even after giving a discount of 10%. At what cost did the shopkeeper purchase it?

Correct option is D

Given:

Marked Price of jacket = ₹1050

Profit of shopkeeper = 25%

Discount = 10%

Formula Used:

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

Selling Price = Marked Price - Discount

Profit = SP - CP

Profit Percent =$$\frac{Profit}{CP} \times 100$$​​

Solution:

Marked Price = ₹1050

Discount = 10% of 1050 = ₹105

Selling Price = 1050 - 105 = ₹945

Let the CP be x

Then Profit = 25% of x = 0.25x

Selling Price = x+0.25x = 1.25x

1.25x= 945

x=$$\frac{945}{1.25} =₹756$$​​