Multiple choice

Ravi marks his goods at 20% above the cost price; he then allows some discount on it and makes a profit of 8%. The rate of discount is

  1. 8%

  2. 10%

  3. 11.11%

  4. 12%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100. Marked Price = 120. Profit = 8%, so Selling Price = 108. Discount = 120 - 108 = 12. Discount percentage = (12/120) * 100 = 10%.

AI explanation

Let the cost price be 100, making the marked price 120 after applying the 20 percent markup. He makes an 8 percent profit, meaning the selling price is 108. The discount is 120 minus 108, which equals 12, so the discount percentage is (12 divided by 120) multiplied by 100. This results in a discount rate of 10 percent.

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