1. **Problem Statement:** A seller buys an electric appliance for 5000 and wants to earn a profit of 20%. He marks the selling price accordingly. If the customer pays outright, a discount of 5% is given. Find the marked price and the actual selling price after discount. 2. **Formula for Marked Price (MP):** $$\text{Profit} = \frac{\text{Marked Price} - \text{Cost Price}}{\text{Cost Price}} \times 100$$ Rearranged to find Marked Price: $$\text{Marked Price} = \text{Cost Price} \times \left(1 + \frac{\text{Profit %}}{100}\right)$$ 3. **Calculate Marked Price:** Given Cost Price (CP) = 5000, Profit % = 20 $$\text{MP} = 5000 \times \left(1 + \frac{20}{100}\right) = 5000 \times 1.20 = 6000$$ 4. **Calculate Selling Price after Discount:** Discount % = 5 Selling Price (SP) after discount: $$\text{SP} = \text{MP} \times \left(1 - \frac{\text{Discount %}}{100}\right) = 6000 \times (1 - 0.05) = 6000 \times 0.95 = 5700$$ 5. **Summary:** - Marked Price = 6000 - Selling Price after 5% discount = 5700 Thus, the seller marks the appliance at 6000 and sells it for 5700 after discount.