Multiple choice

A shopkeeper marks his goods 30% higher than the cost price and allows a discount of 10% on the marked price. In order to earn 6.5% more profit, what discount percent should he allow on the marked price?

  1. 5

  2. 4

  3. 6.5

  4. 6
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100. Marked price = 130, selling price after 10% discount = 117. Current profit = 17%. For 6.5% more profit (total 23.5%), SP should be 123.5. Discount = 130 - 123.5 = 6.5, which is 6.5/130 × 100 = 5%. The profit increases when discount decreases.

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