A customer paid ksh. 5,880 for a suit after he was allowed a discount of 2% on the selling price .If the
discount had not been given the seller would have made the profit of 20% of the sale of the suit .
Determine the price at which the seller bought the suit.
Let's assume the original selling price of the suit is x.
The seller offers a discount of 2%, which means the customer paid 98% of the original selling price. Therefore, the customer paid 0.98x.
If the discount had not been given, the seller would have made a profit of 20%. The profit is calculated as 0.2x.
The selling price is the cost price plus the profit. So, the selling price is x + 0.2x = 1.2x.
Since the customer paid 0.98x, we can set up the equation: 0.98x = 5880.
Dividing both sides of the equation by 0.98 to solve for x:
x = 5880 / 0.98 = 6000.
Therefore, the original selling price of the suit was Ksh. 6000.