Question

A shopkeeper earns a profit of 8% on selling a commodity by giving two successive discounts of 10% and 20% on the marked price of the article. The marked price of the item is how much percent more than its cost price?
1. 30
2. 50
3. 28
4. 38

Answer 1

Correct Answer - Option 2 : 50

Given:

Two successive discounts of 10% and 20%

Earns a profit of 8%

Formula Used:

Equivalent Discount = a + b – (a × b)/100,

Where,

a is the first discount,

b is the second discount

Concept Used:

SP = CP + P,

SP = MP – D,

Where,

SP is selling price,

CP is cost price,

MP is marked price,

D is discounted price.

Calculation:

Equivalent Discount of two successive discounts of 10% and 20%,

⇒ 10 + 20 – (10 × 20)/100

⇒ 30 – 2

⇒ 28% 

A shopkeeper earns an 8% profit

Let the Cost price of an item be Rs. 100

Then the selling price will be Rs. 108

After giving a 28% of discount on MP, he sold an item at Rs. 108

⇒ MP = 108 × 100/72

⇒ MP = 150

MP is more than CP by,

⇒ 150 – 100 = 50

⇒ 50/100 × 100 = 50%

∴ MP is more than CP by 50%.