Multiple choice

A dealer allows a discount of 10% and still gains 5%. What percent above the cost price must he mark his goods?

  1. 15%

  2. 20%

  3. 16 2/3 %

  4. 50%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. Gain = 5%, so SP = 105. Discount = 10% on MP, so 0.9 * MP = 105. MP = 105 / 0.9 = 116.66. Markup = 16.66%.

AI explanation

Let the cost price be 100 rupees. The selling price is 105 rupees after a 5 percent gain. This selling price results from a 10 percent discount on the marked price, so the marked price is 105 divided by 0.9, which equals 116.66. The goods must be marked 16.66 percent above the cost price, which is 16 2/3 percent.

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