An item is sold for Rs. 504 after allowing a 20% discount and still a profit of 5% has been earned. The marked price is how much more than the cost price?

Question

Accepted Answer

1. **Let the cost price be $$x$$:**  
   - Selling price after a 5% profit = $$1.05x = 504$$.

2. **Solve for $$x$$ (cost price):**  
   $$
   x = \frac{504}{1.05} = 480
   $$

3. **Calculate the marked price (before discount):**  
   - Selling price after a 20% discount = $$0.8 	imes 	ext{Marked Price} = 504$$.  
   - Marked price = $$\frac{504}{0.8} = 630$$.

4. **Find the difference between marked price and cost price:**  
   $$
   	ext{Difference} = 630 - 480 = 150
   $$

Thus, the marked price is **Rs. 150 more than the cost price**, making option **(3)** correct.

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