A cycle costs a dealer ₹1,200. He wants a profit of 20% even after giving a discount of 10%. What price should he mark on it?

Explanation

1. 01

   Required SP = 1.2 × ₹1,200 = ₹1,440.

2. 02

   This SP is 90% of the MP.

3. 03

   MP = $1440 \times \frac{100}{90} = 1600$, that is ₹1,600.