PREVIOUSLY ASKED IN:
CTET 2026
Answer
₹250
Explanation
Marked Price (MP) = ₹2500. Price after 20% discount = 2500 - (20% of 2500) = 2500 - 500 = ₹2000. Additional discount for cash = ₹250. Final Selling Price (SP) = 2000 - 250 = ₹1750. Cost Price (CP) = ₹1500. Profit = SP - CP = 1750 - 1500 = ₹250.
Key Points
- > Discount is always calculated on the Marked Price (MP) or Printed Price.
- > Profit or Loss is always evaluated based on the Cost Price (CP).
- > For successive or multiple discounts, apply them sequentially to find the final Selling Price.
- > If the final Selling Price is greater than the Cost Price, a profit is made.
- > Shopkeepers mark up prices significantly above CP to allow for discounts while still making a profit.
- > The Mark up value here is 2500 - 1500 = ₹1000.
- > The additional cash discount is given in flat absolute value (₹250), so it's subtracted directly.
Additional Information
Profit, Loss & Discount Concepts
| Term | Meaning | Formula |
|---|---|---|
| Cost Price (CP) | Buying price | Initial cost incurred |
| Selling Price (SP) | Selling price | Final transaction value |
| Marked Price (MP) | Printed price | Tagged price on item |
| Discount (D) | Reduction | MP - SP |
Memory Tips
- Core Rule: Profit/Loss uses CP as the base. Discounts use MP as the base.
- Multiplier Shortcut: A 20% discount means you pay 80% or \( \frac{4}{5} \) of the MP. (e.g., 80% of 2500 = 2000).