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A trader allows a discount of 20% on his goods and still makes a profit of 25%.Find the profit percent made, if he sells his goods at: (1) the Marker price (2) at 10% discount

What i've tried:

let MP = 100 D=20% => SP = 80  SP = 80 P = 25%  SP      CP 125     100 80       ?  CP = (80 * 100)/125    = 64  profit = SP - CP         = 80 - 64        = 16  P% = 16/64 * 100      = 25%   

but the correct answer is 56.25 %

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    Yes it is. By the way- don't post queries as answers, use comments for those sorts of things.2012-09-30

1 Answers 1

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Let $S$ be the usual sale price, $C$ be the cost.

You are given that $\frac{0.8 S } { C} = 1.25$.

For (1), you want to compute $\frac{S } { C} = \frac{1} {0.8} \frac{0.8 S } { C} = \frac{1} { 0.8} 1.25 = 1.5625$ (ie, 56.25%).

For (2), you want to compute $\frac{0.9 S } { C} = 0.9 \cdot 1.5625 = 1.40625$ (ie, 40.625%).

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    Divide both sides of the equation on Line 2 by 0.8. (A 20% reduction corresponds to a sales price of $0.8S$.)2012-08-31