Banking Exams Quant — Question 703

Question

A merchant marks goods 40% above cost. What discount % can he give to still make 12% profit?

  1. 18%
  2. 20%
  3. 22%
  4. 25%

Correct answer

B — 20%

Explanation (English)

Let CP=100. Marked=140. For 12% profit, SP=112. Discount = (140-112)/140×100 = 20%

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