📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    A trader marks his goods 60% above the cost price. He

    offers a certain discount on the marked price and earns a profit of 28%. (a) What discount percentage does he offer? (b) If he increases the discount by 10 percentage points, what will be his new profit percentage?
    A 20% and 12% Correct Answer Incorrect Answer
    B 15% and 18% Correct Answer Incorrect Answer
    C 20% and 30% Correct Answer Incorrect Answer
    D 18% and 12% Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ, Let cost price (CP) = Rs. 100. Marked price (MP) = 100 × 1.60 = Rs. 160. (a) Let discount = d%. Selling price S1 = 160 × (1 − d/100). Given profit = 28% ⇒ S1 = 100 × 1.28 = Rs. 128. So, 160(1 − d/100) = 128 1 − d/100 = 128/160 = 0.8 d/100 = 0.2 ⇒ d = 20%. (b) New discount = 30%. New selling price S2 = 160 × 0.70 = Rs. 112. Profit = (112 − 100)/100 × 100% = 12%. Answer: (a) 20% discount (b) 12% profit.

    Practice Next
    More Profit and loss Questions
    ask-question