Question

A shopkeeper wants to earn a profit of 8%, and he fixes the marked price at 35% above the CP. What is the discount percent allowed by him to the buyer to earn a profit of 8%?

1. 20%
2. 30%
3. 40%
4. 10%

Answer 1

Correct Answer - Option 1 : 20%

Given Data :

profit of 8%

marked price is 35% above the CP

Formula Used :

Discount % = (Discount /Marked Price)  × 100

Calculation:

Let the value of CP be Rs. 100

⇒ Marked up price becomes Rs. 135 

⇒ Profit becomes Rs. 8. 

⇒ Selling Price becomes Rs. 108

⇒ Discount = 135 – 108 = Rs. 27 

⇒ Discount % = (Discount/Marked Price)  × 100

⇒ (27/135) × 100 

⇒ 20 %

∴ The Discount % allowed by him to the buyer is 20%