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A merchant who marked his goods up by 50% subsequently offered a discount of 20% on the marked price. What is the percentage profit that the merchant make after offering the discount?
- a)30%
- b)125%
- c)25%
- d)20%
- e)16.66%
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
A merchant who marked his goods up by 50% subsequently offered a disco...
Step 1: Assume cost price and find marked price
Approach: Assume cost price as $100.
Let the cost price of the goods to be $ 100.
The merchant marks his goods up by 50%.
Therefore, his marked price = cost price + mark up.
Marked price = $100 + 50% of $100 = 100 + 50 = $150.
The merchant marks his goods up by 50%.
Therefore, his marked price = cost price + mark up.
Marked price = $100 + 50% of $100 = 100 + 50 = $150.
Step 2: Find the discount offered and Selling price
The merchant offers a discount of 20% on the marked price.
Discount offered = 20% of 150 = $30.
Therefore, the goods are finally sold at $150 − $30 = $ 120.
Discount offered = 20% of 150 = $30.
Therefore, the goods are finally sold at $150 − $30 = $ 120.
Cost price is $100 and final selling price is $120.
Therefore, profit made = $20 on the cost price of $ 100.
Merchant made a profit of 20%
Therefore, profit made = $20 on the cost price of $ 100.
Merchant made a profit of 20%
Choice D is the correct answer.
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A merchant who marked his goods up by 50% subsequently offered a disco...
The problem:
A merchant marks up his goods by 50% and then offers a discount of 20% on the marked price. The task is to find the percentage profit that the merchant makes after offering the discount.
Understanding the problem:
To solve this problem, we need to understand the concepts of markup and discount. Markup refers to the increase in price that a merchant adds to the cost of a product to make a profit. Discount, on the other hand, refers to a reduction in price offered to customers as an incentive to purchase.
Step-by-step solution:
To find the percentage profit that the merchant makes after offering the discount, we can follow these steps:
1. Let's assume the cost price of the goods is $100.
2. The merchant marks up the goods by 50%, so the marked price becomes $100 + 50% of $100 = $150.
3. The merchant then offers a discount of 20% on the marked price. This means a reduction of 20% of $150, which is $30.
4. The selling price after the discount is $150 - $30 = $120.
5. The profit made by the merchant is the difference between the selling price and the cost price, which is $120 - $100 = $20.
6. To find the percentage profit, we divide the profit by the cost price and multiply by 100: ($20 / $100) * 100 = 20%.
Conclusion:
The merchant makes a percentage profit of 20% after offering the discount. Therefore, the correct answer is option D) 20%.
A merchant marks up his goods by 50% and then offers a discount of 20% on the marked price. The task is to find the percentage profit that the merchant makes after offering the discount.
Understanding the problem:
To solve this problem, we need to understand the concepts of markup and discount. Markup refers to the increase in price that a merchant adds to the cost of a product to make a profit. Discount, on the other hand, refers to a reduction in price offered to customers as an incentive to purchase.
Step-by-step solution:
To find the percentage profit that the merchant makes after offering the discount, we can follow these steps:
1. Let's assume the cost price of the goods is $100.
2. The merchant marks up the goods by 50%, so the marked price becomes $100 + 50% of $100 = $150.
3. The merchant then offers a discount of 20% on the marked price. This means a reduction of 20% of $150, which is $30.
4. The selling price after the discount is $150 - $30 = $120.
5. The profit made by the merchant is the difference between the selling price and the cost price, which is $120 - $100 = $20.
6. To find the percentage profit, we divide the profit by the cost price and multiply by 100: ($20 / $100) * 100 = 20%.
Conclusion:
The merchant makes a percentage profit of 20% after offering the discount. Therefore, the correct answer is option D) 20%.
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A merchant who marked his goods up by 50% subsequently offered a discount of 20% on the marked price. What is the percentage profit that the merchant make after offering the discount?a)30%b)125%c)25%d)20%e)16.66%Correct answer is option 'D'. Can you explain this answer?
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A merchant who marked his goods up by 50% subsequently offered a discount of 20% on the marked price. What is the percentage profit that the merchant make after offering the discount?a)30%b)125%c)25%d)20%e)16.66%Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about A merchant who marked his goods up by 50% subsequently offered a discount of 20% on the marked price. What is the percentage profit that the merchant make after offering the discount?a)30%b)125%c)25%d)20%e)16.66%Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A merchant who marked his goods up by 50% subsequently offered a discount of 20% on the marked price. What is the percentage profit that the merchant make after offering the discount?a)30%b)125%c)25%d)20%e)16.66%Correct answer is option 'D'. Can you explain this answer?.
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