Question

A merchant marks his goods up by $60\%$ and then offers a discount on the marked price. If the final selling price after the discount results in the merchant making no profit or loss, what was the percentage discount offered by the merchant ?

• A. $60\%$
• B. $40\%$
• C. $37.5\%$
• D. Depends on cost price

Answer 1

Answer: (C)

$37.5\%$

Assume the cost price to be $100$
Therefore, the merchant"s marked price will be $100+60\%$ of $100=160$
Now, the merchant offers a discount on the marked price. The discount results in the merchant selling the article at no profit no loss or at the cost price.
That is the merchant has sold the article at $100$.
Therefore, the discount offered $=60$.
Discount offered is usually measured as a percentage of the marked price.
Hence, $\%$ discount $=\frac{60}{160}\times 100=37.5\%$