Multiple choice

Mr. Anurag buys goods at Himachal Pradesh at a discount of 20% on marked price. He has to pay certain kind of duties of 15% on the net cost he paid for goods bought. He marked a new price and earned a profit of 40% over his total expenses. What is the percentage change in the marked price?

  1. 32.20%

  2. 28.80%

  3. 30%

  4. 26.75%

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

Let original marked price = M. Anurag pays 80% of M (20% discount), plus 15% duty = 0.8M × 1.15 = 0.92M total cost. He earns 40% profit on this cost, so selling price = 1.4 × 0.92M = 1.288M. New marked price is 128.8% of original, an increase of 28.8%, confirming option B.

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