Multiple choice

A trader gives a discount of 11.11% on his products. What percent above the cost price should he mark his goods in order to gain 14.28%?

  1. 28.57%

  2. 35%

  3. 22.22%

  4. 25.39%

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

Let CP = 100. Desired SP = 114.28. Discount = 11.11% = 1/9. SP = MP * (1 - 1/9) = MP * 8/9. So, 114.28 = MP * 8/9. MP = 114.28 * 9 / 8 = 128.565. Markup = 28.57%.

AI explanation

Express the given percentages as fractions to simplify calculation: an 11.11% discount equals 1/9, and a 14.28% profit equals 1/7. Using the formula Marked Price * (1 - Discount) = Cost Price * (1 + Profit), let the cost price be 1, giving Marked Price * (8/9) = 1 * (8/7). Solving for the marked price gives 9/7, which is 1 + 2/7, meaning the goods must be marked 28.57% above the cost price.

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