Question: What is the maximum percentage discount (approximately) that a merchant can offer on his marked price, so that he ends up selling at no profit or loss, if he initially marked his goods up by 40%?
Options:
A) 60%
B) 28.5%
C) 33.5%
D) No discount
Show Answer
Answer:
Correct Answer: B
Solution:
- Let cost price be Rs. 100
and marked price $ =100+40=Rs.,140 $
Let required discount be x %.
According to the question,
$ 140\times ( \frac{100-x}{100} )=100 $
$ \Rightarrow $ $ 100-x=\frac{100\times 100}{140} $
$ \Rightarrow $ $ x=100-\frac{100\times 100}{140} $
$ =\frac{40\times 100}{140}=28.5% $ (approx).