An article is sold at a selling price (SP) of Rs 2400 after a discount of 20% on the marked price (MP). If the profit earned is 20% of the marked price, what will be the profit if the article is sold at Rs 2700?

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  1. Rs 600
  2. Rs 700
  3. Rs 800
  4. Rs 900
  5. Rs 450

Answer (Detailed Solution Below)

Option 4 : Rs 900
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Detailed Solution

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The selling price (SP) is Rs 2400 after a discount of 20% on the marked price.

Let the marked price = MP 

Discount = 20% of MP = 0.20 × MP 

Selling price = MP - Discount 

Substituting the values:

2400 = MP - 0.20 × MP

2400 = 0.80 × MP

MP = 2400 / 0.80 = 3000 Rs

The profit is 20% on the marked price.

Profit = 20% of MP = 0.20 × 3000 = 600 Rs

Selling price = Cost price + Profit.

Substituting the values:

2400 = CP + 600

CP = 2400 - 600 = 1800 Rs

New selling price = Rs 2700.

Profit = Selling price - Cost price.

Substituting the values:

Profit = 2700 - 1800 = 900 Rs

Thus, the profit when the article is sold at Rs 2700 is Rs 900.

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