Question

A shopkeeper fixes the marked price of an item 35% above its cost price. The percentage of discount allowed to gain 8% is
1. 18%
2. 20%
3. 22%
4. 24%

Answer 1

Correct Answer - Option 2 : 20%

Given:

Mark up percent = 35%

Profit percentage = 8%

Formula used:

Discount percentage = {(MP - SP)/MP} × 100

where,

MP = Marked price

SP = Selling price

Calculation:

Let the CP be 100x.

MP = 100x + 100x × 35%

⇒ MP = 135x

SP = 100x + 100x × 8%

⇒ SP = 108x

Discount percentage = {(MP - SP)/MP} × 100

⇒ {(135x - 108x)/135x} × 100

⇒ {(27x)/135x} × 100

⇒ 20%

∴ The percentage of discount allowed is 20%.