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The marked price of a watch is 30% above the cost price. When it is sold allowing 20% discount on it, there is a gain of Rs 150. Find the marked price and the cost price of them.​​

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Answer:

Marked price: Rs. 4875

Cost price: Rs. 3750

Explanation:

(i) Cost price: 100%

(ii) Marked price: (100% + 30%) = 130%

(i) Let the cost price be p

(ii)  Marked price: 130% × p = 1.3p

Given, 20% discount then sold at 80%

Discount price: (130% × 80%) × p = 1.04p - discounted price

Gain price: 1.04p - p = 0.04p

Cost price:

0.04p = 150

p = 150/0.04 = 3750 ← This is the cost price.

Marked price:

1.3p  =  1.3(3750) = Rs. 4875

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