Question #22535

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%

Expert's answer

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%.

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%.

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