Multiple choice

A merchant marks his goods up by $60\%$ and then offers a discount on the marked price. If the final selling price after the discount results in the merchant making no profit or loss, what was the percentage discount offered by the merchant ?

  1. $60\%$
  2. $40\%$
  3. $37.5\%$

  4. Depends on cost price
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. Marked price = 160. SP = 100 (no profit/loss). Discount = 160 - 100 = 60. Discount % = (60/160) * 100 = 37.5%.

AI explanation

Assume the cost price is 100, which makes the marked price 160. Since there is no profit or loss, the selling price must equal the cost price of 100. The discount amount is 160 minus 100, which equals 60. Using the discount percentage formula, Discount divided by Marked Price times 100, the discount is 60 divided by 160 times 100, which equals 37.5. The percentage discount offered is 37.5 percent.

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