A merchant purchases a wrist watch for 450 and fixes its list price in such a way that after allowing a discount of 10% he earns a profit of 20% . The list price of the wrist watch is?? Need your answer with explanation Options a) 480 b) 500 c) 300 d) 600

• ans: d)600
  10% disc on list price= 20% profit
  90% of L.P=540(20% profit on cost price gives Selling price = 540)
  on solving, L.P= 600
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• 600 will be the list price
  becoz after 10% discount watch will cost 540
  which is equal to 450+20% of 450
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