The discount that still leaves 4% — Aptitude Question
The discount that still leaves 4%: A shopkeeper marks his goods 30% above cost price. What discount percent can he… Answer and worked solution on CodeKairo.
- Topic: Profit & Loss
- Section: Quantitative Aptitude
- Difficulty: Medium
- Time target: 75 seconds
Question
A shopkeeper marks his goods 30% above cost price. What discount percent can he allow and still make a profit of 4%?
Options
- 18%
- 20%
- 22%
- 25%
Show the answer and the worked solution
Correct answer: B. 20%
Worked solution
- CP = 100, marked price = 130, required SP = 104.
- Discount = 130 − 104 = 26.
- Discount % = 26/130 = 20%.
Answer: 20%.
The idea
Fix the cost at 100 so both the marked price and the target sale price are plain numbers. The discount percent is always taken on the marked price.
Shortcut. The sale must keep 104/130 of the marked price, and 104/130 = 8/10 (13 × 8 = 104), so 80% is kept — a 20% discount.
Common trap. 25% — measuring the ₹26 cut against the ₹104 sale price instead of the ₹130 marked price.