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A cosmetic product is available at 75% off. If the shopkeeper sells it and earns ₹ 1,874, what is its nominal value?

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Punjab Police Constable Official Paper-I & II (Held On: 06 Aug, 2024 Shift 1)
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  1. ₹5,674
  2. ₹6,145
  3. ₹7,496
  4. ₹ 8,342

Answer (Detailed Solution Below)

Option 3 : ₹7,496
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Detailed Solution

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Given:

Discount percentage = 75%

Profit earned = ₹ 1,874

Formula Used:

Selling Price = Nominal Value - Discount

Profit = Selling Price - Cost Price

Selling Price = ₹ 1,874

Discount = Nominal Value × Discount Percentage

Calculation:

Let the nominal value be NV.

Discount = NV × (75/100) = 0.75 × NV

Selling Price = Nominal Value - Discount

⇒ 1874 = NV - 0.75 × NV

⇒ 1874 = NV × (1 - 0.75)

⇒ NV = 1874 / 0.25

⇒ NV = 7496

∴ The nominal value of the cosmetic product is ₹ 7,496.

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