Multiple choice

An article is marked up by 70% above its cost price. A customer is then given successive discounts of 5% and 20% on the marked price. If the customer pays in cash, an additional 20% discount is offered. What is the seller's overall gain percentage?

  1. 2.25%

  2. 4.36%

  3. 3.25%

  4. 3.36%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = 100. MP = 170. After 5% and 20% discounts: 170 * 0.95 * 0.80 = 129.2. After additional 20% cash discount: 129.2 * 0.80 = 103.36. Gain = 3.36%.

AI explanation

Let the cost price be 100, so the marked price after a 70 percent markup is 170. The price after successive discounts of 5 percent, 20 percent, and an additional cash discount of 20 percent is 170 multiplied by 0.95, then by 0.80, and then by 0.80 again, resulting in a final selling price of 103.36. Using the gain percentage formula, the gain is ((103.36 minus 100) divided by 100) multiplied by 100. This equals 3.36 percent.

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