Multiple choice

A merchant allows a discount of 10% for cash payment. How much percentage above the cost price must he marks his goods. So as to make a profit of 17%?

  1. 27%

  2. 30%

  3. 33%

  4. 40%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100. Target SP for 17% profit = 117. After 10% cash discount on MP, we get 0.9 × MP = 117, so MP = 117 ÷ 0.9 = 130. Mark-up above CP = (130 - 100) ÷ 100 × 100 = 30%. Answer A (27%) is 117 ÷ 0.9 - 17 calculated incorrectly, C (33%) might be 17% + 10% + 6% arbitrary, D (40%) has no clear derivation.

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