Multiple choice

A shopkeeper allows a 10% discount on the marked price for cash payment. If he wants to earn a profit of 5%, then the marked price is how much percent more than the cost price?

  1. 16.67%

  2. 15.33%

  3. 22%

  4. 10%
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A Correct answer
Explanation

Let CP = 100. Profit = 5%, so SP = 105. Discount = 10%, so SP = 0.9 * MP. Thus, 0.9 * MP = 105, MP = 105 / 0.9 = 116.67. The marked price is 16.67% more than the cost price.

AI explanation

Let the cost price be Rs. 100, so the selling price required for a 5% profit is Rs. 105. The shopkeeper provides a 10% discount on the marked price, meaning 90% of the marked price equals the Rs. 105 selling price. This makes the marked price Rs. 116.67, making it 16.67% more than the cost price.

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