A cycle merchant allows 25% discount on the marked price of the cycles and still makes a profit of 20%. If he gains rs. 360 over the sale of one cycle, find the marked price of the cycle.

Explanation

Let marked price of the article = Rs. 100x Discount % = 25% 25 => Selling price = 100x − ( 100 × 100x) = 100x − 25x = Rs. 75x Profit % = 20% 75x => Cost price = (100+20) × 100 75x = 6 × 5 = Rs. 62.5x According to ques, => Profit = 75x − 62.5x = 360 360 => x = 12.5 =28.8 ∴ Marked price of the cycle = 100 × 28.8 = Rs. 2880