Question

A person markup the cycle at 30% above the cost price of cycle. He sells a cycle at Rs. 12000 and makes a profit of 20%. Find the discount percentage offered on cycle.
1. (100/13)%
2. (100/19)%
3. (100/21)%
4. (100/17)%

Answer 1

Correct Answer - Option 1 : (100/13)%

Given:

Markup price = 30% above the cost price of a cycle.

The selling price of a cycle = Rs. 12000

Profit = 20%

Formula used:

Markup price = (cost price) × (100 + % above)/100

Cost price = selling price × (100)/(100 + profit percentage)

Discount = Markup price - Selling price

Discount percentage = (discount/markup price) × 100

Calculation:

Cost price = selling price × (100)/(100 + profit percentage)

⇒ Cost price = 12000 × 100/(100 + 20)

⇒ Cost price = 12000 × 100/120

⇒ Cost price = Rs. 10000

Markup price = 10000 × (100 + 30)/100

⇒ Markup price = Rs. 13000

Discount = 13000 – 12000

⇒ Discount = Rs. 1000

Discount percentage = (1000/13000) × 100

⇒ (100/13)%

∴ The discount percentage of a cycle is (100/13)%