Multiple choice

A businessman allows a discount of 10% on the marked price. What percent above the cost price must he mark his goods to make a profit of 17%?

  1. 27%

  2. 18%

  3. 30%

  4. 20%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. To get 17% profit, SP = 117. Since there is a 10% discount on MP, 0.9 * MP = 117, so MP = 130. The markup is (130-100)/100 = 30%.

AI explanation

Let the cost price be 100, requiring a selling price of 117 to achieve a 17 percent profit. The shopkeeper offers a 10 percent discount on the marked price, so the selling price is 90 percent of the marked price. Using the formula Marked Price equals Selling Price divided by 0.9, the marked price is 117 divided by 0.9, which equals 130. This means the goods must be marked 30 percent above the cost price.

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