Question

If, after giving the discount of 20%, Ram wants to earn the profit of 20%, then by how much percent should the price be marked higher?

Answer 1

40% so that 20% be discount and rest will profit

Answer 2

Answer:

Marked price must be 50% higher

Step-by-step explanation:

Let his cost price = Rs. 100

Then, Selling Price = 100 + 20% of 100

                                = 100 + 0.20 × 100

                                = 100 + 20 = Rs. 120

As Ram gets this Rs. 120 after allowing a discount of 20%. So,

Selling Price = Marked Price - 20% of Marked Price

120 = Marked Price ( 1 - 0.2 )

120 = Marked Price × 0.8

⇒ Marked Price = Rs. 150

Now, Increased Price = 150 - 100

                                     = Rs. 50

$\text{Therefore, percentage of marked price needed to be increased = }\frac{50}{100}\times 100=50\%$