Multiple choice

Directions: Answer the questions independently of each other. A dealer bought rice worth Rs.1700 and sold 50% of it at the marked price gaining 8% in a particular month. There was an inflation of 4% in the price of rice the following month. What percentage discount (on the inflated M.P.) has to be given to makean overall profit of 9% on the rice bought?

  1. 2.1%

  2. 2.6%

  3. 3%

  4. 3.4%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cost = 1700. Target profit = 9% of 1700 = 153. Total revenue needed = 1853. 50% of rice (850 cost) sold at 8% profit = 850 * 1.08 = 918. Remaining 850 cost + 4% inflation = 884 cost. Revenue needed from remaining = 1853 - 918 = 935. Marked price of remaining = 884 * 1.08 (to get 8% profit) = 954.72. Discount needed = (954.72 - 935) / 954.72 = 2.06%.

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