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Siddhart is a pen-seller. He sells a pen such that the profit earned by selling 10 pens is equal to the cost price of 1 pen. The discount he gave on the marked price of the pen is 3 times the profit he earned by selling the pen. What approximate discount % should he offer the customer if he wishes to have a profit of 20%
  • a)
    22.22%
  • b)
    14.28%
  • c)
    21.43%
  • d)
    20%
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Siddhart is a pen-seller. He sells a pen such that the profit earned b...
Let the profit be P and cost price be C.P
Then 10 P = C.P ....(I)
Selling Price = Cost Price + Profit = 10 P +P = 11P
Discount given  = 3P.
Marked price = Selling Price + Discount = 11P+3P = 14P.
Let the discount given to ensure profit of 20% be d%.
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Most Upvoted Answer
Siddhart is a pen-seller. He sells a pen such that the profit earned b...
Profit Calculation:
Let's assume the cost price of one pen is C.
According to the given information, the profit earned by selling 10 pens is equal to the cost price of 1 pen.
So, the profit earned by selling 10 pens = C

Discount Calculation:
Now, let's assume the marked price of one pen is M.
According to the given information, the discount offered by Siddhart is 3 times the profit earned by selling the pen.
So, the discount offered = 3 * C

Profit Percentage:
The profit percentage is given as 20%.
So, the profit earned by selling one pen = 20% of the cost price = 0.2C

Required Discount Percentage:
Let's assume the discount percentage offered by Siddhart is D%.
So, the selling price of one pen after discount = M - (D/100) * M

Profit earned by selling one pen after discount = Selling price - Cost price
= (M - (D/100) * M) - C

Given that, the profit earned by selling 10 pens is equal to the cost price of 1 pen.
So, the profit earned by selling 10 pens = 10 * (M - (D/100) * M) - C

According to the given information, the profit earned by selling 10 pens = C
So, 10 * (M - (D/100) * M) - C = C

Simplifying the equation,
10M - (10D/100)M - C = C
10M - (10D/100)M = 2C
10M - (D/10)M = 2C
(100 - D)M/10 = 2C
100 - D = 20C/M
D = 100 - (20C/M)

Substituting the value of C = profit earned by selling 10 pens,
D = 100 - (20 * C/M)
D = 100 - (20 * C)

Now, we need to find the approximate discount percentage that Siddhart should offer to have a profit of 20%.

Given that the discount offered = 3 * C

So, 3 * C = 100 - (20 * C)
23C = 100
C = 100/23

Substituting the value of C in the equation D = 100 - (20 * C),
D = 100 - (20 * (100/23))
D = 100 - (2000/23)
D = 100 - 86.9565
D ≈ 13.0435

Therefore, Siddhart should offer an approximate discount of 13.04% to have a profit of 20%.

Hence, the correct answer is option B) 14.28%.
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Siddhart is a pen-seller. He sells a pen such that the profit earned by selling 10 pens is equal to the cost price of 1 pen. The discount he gave on the marked price of the pen is 3 times the profit he earned by selling the pen. What approximate discount % should he offer the customer if he wishes to have a profit of 20%a)22.22%b)14.28%c)21.43%d)20%Correct answer is option 'B'. Can you explain this answer?
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Siddhart is a pen-seller. He sells a pen such that the profit earned by selling 10 pens is equal to the cost price of 1 pen. The discount he gave on the marked price of the pen is 3 times the profit he earned by selling the pen. What approximate discount % should he offer the customer if he wishes to have a profit of 20%a)22.22%b)14.28%c)21.43%d)20%Correct answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Siddhart is a pen-seller. He sells a pen such that the profit earned by selling 10 pens is equal to the cost price of 1 pen. The discount he gave on the marked price of the pen is 3 times the profit he earned by selling the pen. What approximate discount % should he offer the customer if he wishes to have a profit of 20%a)22.22%b)14.28%c)21.43%d)20%Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Siddhart is a pen-seller. He sells a pen such that the profit earned by selling 10 pens is equal to the cost price of 1 pen. The discount he gave on the marked price of the pen is 3 times the profit he earned by selling the pen. What approximate discount % should he offer the customer if he wishes to have a profit of 20%a)22.22%b)14.28%c)21.43%d)20%Correct answer is option 'B'. Can you explain this answer?.
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