Answer to Question #22535 in Algebra for Upmanyu Sharma

Question

A shopkeeper allows a discount of 10% on the marked price. How much above the cost price must be mark his goods to gain 8%

Answer 1

Let the cost price is 1 and the marked price is byx % above the cost price, namely (1+x). After the discout of 10% it will be
0.9(1+x). On the other hand, the shopkeeper gains 8% of the cost price, so
after discount the marked price is 1.08. Then we have the equation:
0.9(1+x)=1.08
1+x = 1.2
x=0.2
Answer: the marked price must be above the cost price by 20%.