Question
Download Solution PDFA shopkeeper sold an article at 20% discount and earned a profit of 4%. By what percent the marked price of the article more than the cost price?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
A shopkeeper sold an article at 20% discount and earned a profit of 4%.
Concept:
To find the percentage by which the marked price is more than the cost price, we need to relate the cost price, selling price, and marked price.
Formula Used:
1. Selling Price (SP) = Cost Price (CP) × (1 + Profit%)
2. Selling Price (SP) = Marked Price (MP) × (1 - Discount%)
Calculation:
Let Cost Price (CP) = 100 units
Profit = 4% of CP
⇒ SP = CP × (1 + 4/100)
⇒ SP = 100 × 1.04
⇒ SP = 104 units
Discount = 20% of MP
⇒ SP = MP × (1 - 20/100)
⇒ 104 = MP × 0.8
⇒ MP = 104 / 0.8
⇒ MP = 130 units
Percentage by which MP is more than CP:
⇒ (MP - CP) / CP × 100
⇒ (130 - 100) / 100 × 100
⇒ 30 / 100 × 100
⇒ 30%
∴ The correct answer is option 2 (30%).
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