Multiple choice

A shopkeeper allows a discount of 10% on the marked price. How much above the cost price must he mark his goods to gain 8%?

  1. 20%

  2. 100%

  3. 80%

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100. To gain 8%, SP = 108. Discount is 10%, so 0.9 * MP = 108. MP = 108 / 0.9 = 120. MP is 20% above CP.

AI explanation

Assume the cost price of the goods is Rs. 100. To gain an 8% profit, the selling price must be Rs. 108. Let the marked price be M, and applying the discount formula gives the selling price as 0.90M = 108. Solving for M gives a marked price of Rs. 120, which is 20% above the cost price, resulting in 20%.

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