Question

A merchant marks his goods up by $75\%$ above his cost price. what is the maximum $\%$ discount that he can offer so that he ends up selling at no profit or loss?

• A. $75\%$
• B. $47.65\%$
• C. $300\%$
• D. $42.85\%$

Answer 1

The correct option is D $42.85\%$

Let us assume that the cost price of the article $=Rs.100$
Therefore, the merchant would have marked it to $Rs.100+75\%$ of $Rs.100=100+75=175$
Now, if he sells it at no profit or loss, he sells it at the cost price.
i.e., he offers a discount of $Rs.75$ on his selling price of $Rs.175$
Therefore, his $\%$ discount $=\frac{75}{175}\times 100=42.85\%$