A trader allows a trade discount of 20% and a cash discount of $${\text{ 6}}\frac{1}{4}\% $$ on the marked price of the goods and gets a net gain of 20% of the cost. By how much above the cost should the goods be marked for the sale = ?
A. 40%
B. 50%
C. 60%
D. 70%
Answer: Option C
Solution(By Examveda Team)
$$\eqalign{ & {\text{Single equivalent discount }} \cr & = \left( {20 + \frac{{25}}{4} - \frac{{20 \times 25}}{{400}}} \right)\% \cr & = 25\% \cr} $$Let cost price of article = Rs. 100
∴ Selling price of article = Rs. 120 (20% profit)
Let the marked price of article = Rs. x
$$\eqalign{ & \therefore x \times \frac{{75}}{{100}} = 120 \cr & \Rightarrow x = \frac{{120 \times 100}}{{75}} \cr & \Rightarrow x = {\text{Rs}}{\text{. 160}} \cr & {\text{Required percentage }} \cr & {\text{ = }}\frac{{160 - 100}}{{100}} \times 100 \cr & = 60\% \cr} $$
Related Questions on True Discount
The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate percent is:
A. 12%
B. 13%
C. 15%
D. 14%
A. Rs. 9025.20
B. Rs. 9200
C. Rs. 9600
D. Rs. 9560
A. Rs. 12,000 in cash
B. Rs. 12,880 at credit
C. Both are equally good
D. Rs. 18.33
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