Answer:
The marked price of the watch is Rs 4875 and the cost price is Rs 3750
Explanation:
Let the cost price of the watch be Rs. y and the marked price of the watch be Rs. x.
The marked price of a watch is 30% above the cost price, therefore the marked price of the watch (x) = y + 30% × y = y + 0.3y = 1.3y.
The watch is sold at 20% discount, this means it is sold at x - 20% × x = x - 0.2x = 0.8x.
When sold at 20% discount, there is a gain of Rs 150. Therefore:
0.8x = 150 + cost price
0.8x = 150 + y
but x = 1.3y
0.8(1.3y) = 150 + y
1.04y = 150 + y
1.04y - y = 150
0.04y = 150
y = 3750
Since x = 1.3y = 1.3(3750) = 4875
Therefore the marked price of the watch is Rs 4875 and the cost price is Rs 3750
