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GATE 2024 EE – Question 4

General Aptitude · Quantitative Aptitude: Arithmetic and Number Computation · 1 mark · Multiple choice

A shopkeeper buys shirts from a producer and sells them at 20% profit. A customer has to pay ₹3,186.00 including 18% taxes, per shirt. At what price did the shopkeeper buy each shirt from the producer?

  1. ₹2,500.00
  2. ₹1,975.40
  3. ₹2,250.00
  4. ₹2,548.80

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Show answer and explanation

Correct answer: (C) ₹2,250.00

Explanation

The price before tax is $3186/1.18=2700$. That is the selling price with 20% profit, so the cost price is $2700/1.2=2250$.