# Word Problem 2

**Problem 2: A trades man marks his goods 25% above cost price, but allowes 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**