Multiple choice

A dealer marks his goods 40% above the cost price. He then allows some discount on the marked price, so that he makes a profit of 33%. The rate of the discount is

  1. 16%

  2. 6%

  3. 5%

  4. 15%

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. Marked Price = 140. Required Profit = 33%, so Selling Price = 133. Discount = 140 - 133 = 7. Discount percentage = (7 / 140) * 100 = 5%.

AI explanation

Assume the cost price is 100, which makes the marked price 140 after the 40% markup. To achieve a 33% profit, the selling price must be 133. The discount amount is 140 minus 133, which equals 7. Using the discount percentage formula, (Discount / Marked Price) * 100, we calculate (7 / 140) * 100. This simplifies to 5, so the rate of the discount is 5%.

Keep practicing — related questions