# Word Problem 2 (Cost calculation, marked price , discount)

Problem 2: A trades man marks his goods 25% above cost price, but allows 12-1/2% discount to cost payment. Find the cost of an article which is sold for Rs 875.

a. Rs 700                      b. Rs 800                           c. Rs 900                  d. RS 950

(math test for jobs. MCQs on math)

Solution:

Before we give solution note that

CP= Cost Price

MP=Marked Price

SP= Sale Price

D=Discount

We are given that SP = Rs 875

We proceed further by supposing that

CP=y

Now since marked price is

This is customer’s cost payment amount !

Now discount is 12-1/2% of customers cost payment, we write discount as;

after calculation and simplification we get

Now formula for discount is

Putting values of D, MP and SP

So, the cost price is Rs 800

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