Question

A merchant bought some goods at a discount of 20% of the list price, He wants to mark them at such a price than he can give a discount of 20% of the marked price and still make a profit of 20% of the selling price. The percent of the list price at which he should mark them is:

• A. $20\%$
• B. $100\%$
• C. $125\%$
• D. $80\%$
• E. $120\%$

Answer 1

The correct option is E $120\%$

Let a be the list price of goods.

Let b be the marked price of goods.

$S.P.=b-\frac{20}{100}b=\frac{80}{100}bC.P.=a-\frac{20}{100}a=\frac{80}{100}a⟹\frac{S.P.-C.P.}{C.P.}\times 100=20⟹\frac{b-a}{a}=\frac{1}{5}⟹\frac{b}{a}=\frac{6}{5}⟹b=\frac{6a}{5}$

He should mark his goods at 120% of the list price.