Question

A merchant allows a discount of 10% for cash payment. How much percent above the cost price must he marks his goods so as to make a profit of 17% allowing the discount.
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Answer 1

Answer:

Let the cost price of the item be ‘ x ‘.

Let the marked price be ‘y’.

Discount offered = 10%

Then the selling price = 0.9y

Profit = 17%

Hence we have, 1.17x = 0.9y

Hence y = 1.17x/0.9 =1.3x

Hence the marked price must be kept 30% more than the cost price.