Question 4 the day : September 17, 2002
The question for the day is a sample practice problem in profit, loss, discounts.

Question
A trader buys goods at a 19% discount on the label price. If he wants to make a profit of 20% after allowing a discount of 10%, by what % should his marked price be greater than the original label price?

1. +8%
2. -3.8%
3. +33.33%
4. None of these

Correct Answer is 8% profit. Correct Choice is (1)

Explanatory Answer

Let the label price be = Rs.100. The trader buys at a discount of 19%.
Hence, his cost = 100 - 19 = 81.

He wants to make a profit of 20%. Hence his selling price = 1.2 (81) = 97.2

However, he wants to get this Rs.97.2 after providing for a discount of 10%. i.e. he will be selling at 90% of his marked price.
Hence, his marked price M = = 108 which is 8% more than the original label price.

Sorted by Subject
Algebra, Arithmetic & Geometric Progressions, Averages and Mean, Clocks and Calendars, Data Sufficiency, English Grammar, Function, Geometry, Interest, Inequality, Mensuration, Mixtures & Alligations, Number System and Theory, Percentages, Permutation & Combination, Pipes & Cisterns And Work & Time, Probability, Profit & Loss, Races, Ratio, Proportion, Set Language and Theory, Speed, Time & Distance, Trigonometry, Miscellaneous, General Knowledge.

Sorted by Date

2003
January 2003, February 2003, March 2003, April 2003, May 2003, June 2003, July 2003, August 2003, September 2003, October 2003, November 2003.

2004
February 2004, March 2004, April 2004, May 2004, June 2004, July 2004, August 2004, November 2004, December 2004.