Multiple choice

Pramod sells trousers after giving a 30% discount on the marked price, and he makes a profit of 40%. By what percentage should the marked price be increased so that even after giving a discount of 60%, Pramod can make a profit of 20%?

  1. 30%

  2. 40%

  3. 50%

  4. 60%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. Profit 40% means SP = 140. Discount 30% on MP means 0.7 * MP = 140, so MP = 200. New target: Profit 20% means new SP = 120. Discount 60% means 0.4 * New_MP = 120, so New_MP = 300. Increase from 200 to 300 is 100/200 = 50%.

AI explanation

Let the cost price be 100. A 40% profit makes the selling price 140, which is 70% of the marked price after a 30% discount, making the initial marked price 200. For the new scenario, a 20% profit requires a selling price of 120, which must be 40% of the new marked price after a 60% discount, making the new marked price 300. The required increase in marked price is from 200 to 300, which is a 50% increase.

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