Question

m/s traders allows10% trade discount and 5% as a sales tax even then their net profit is of 14% .what is the raise in the cash price to determine the marked price

Answer 1

Let the MP be 1
Discount=10% of 1
=10/100*1
=1/10
SP=1-1/10
=10-1/10
=9/10
Sales tax=5% of 9/10
=5/100*9/10
=1/20*9/10
=9/200
Now CP
9/10+9/200
180+9/200
189/200
Raise in MP than CP
1-189/200
200-189/200
$\frac{200 - 189}{200}$
11/200
%=11/200*189/200
=11*200/189*200
=11/189
=0.0582% is the answer.