Multiple choice

A storekeeper sells an item for $120. After giving a discount of 20% he still earns a profit of 20%. Find by what percent is the price marked up over the cost price?

  1. 40%

  2. 30%

  3. 50%

  4. 52%

  5. 62%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = x. SP = 120. SP = 1.2 * CP -> 120 = 1.2x -> x = 100. Marked Price (MP) - 20% of MP = 120 -> 0.8 * MP = 120 -> MP = 150. Markup = (150 - 100) / 100 = 50%.

AI explanation

The cost price is calculated by dividing the selling price of \$120 by 1.20, resulting in \$100. The marked price is found by dividing the selling price by 0.80, since a 20 percent discount was applied, resulting in $150. The markup percentage is calculated as 50 divided by 100 multiplied by 100, making the markup 50 percent.

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