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Question : A merchant allows a discount of 10% on the marked price for the cash payment. To make a profit of 17%, he must mark his goods higher than their cost price by:

Option 1: 33%

Option 2: 40%

Option 3: 27%

Option 4: 30%


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 7th Jan, 2024

Correct Answer: 30%


Solution : Let the cost price be 100.
Since profit percentage = 17%
⇒ Selling price = 100 + 17% of 100 = 117
Since discount = 10% of marked price
⇒ Selling price = 90% of marked price
⇒ 117 = 90% of marked Price
⇒ Marked price $=\frac{117×100}{90} = 130$
So, the required percentage $=\frac{\text {Marked price – Cost price}}{\text {Cost price}} × 100 = \frac{130–100}{100}× 100 = 30$%
⇒ Marked price is higher than the cost price by 30%.
Hence, the correct answer is 30%.

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