Multiple choice

A merchant marks his goods up by $75\%$ above his cost price. what is the maximum $\%$ discount that he can offer so that he ends up selling at no profit or loss?

  1. $75\%$
  2. $47.65\%$
  3. $300\%$
  4. $42.85\%$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = 100. MP = 175. To have no profit/loss, SP must be 100. Discount = 175 - 100 = 75. Discount % = (75 / 175) * 100 = 42.857%.

AI explanation

Assume the cost price is 100, making the marked price 175. To avoid profit or loss, the selling price must equal the cost price of 100. The maximum discount amount is 175 minus 100 which equals 75. Using the discount percentage formula, Discount divided by Marked Price times 100, the discount is 75 divided by 175 times 100, which is approximately 42.85. The maximum discount he can offer is 42.85 percent.

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