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# A merchant makes a profit of 30% after offering a discount of 20% on h

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Math Expert
Joined: 02 Sep 2009
Posts: 53005
A merchant makes a profit of 30% after offering a discount of 20% on h  [#permalink]

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29 Jan 2019, 07:46
00:00

Difficulty:

75% (hard)

Question Stats:

35% (02:18) correct 65% (02:17) wrong based on 27 sessions

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A merchant makes a profit of 30% after offering a discount of 20% on his marked price. By what percentage did he mark his goods up before offering the discount?

A. 25%
B. 26%
C. 50%
D. 56%
E. 62.5%

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Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 8883
Location: Pune, India
Re: A merchant makes a profit of 30% after offering a discount of 20% on h  [#permalink]

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29 Jan 2019, 07:53
Bunuel wrote:
A merchant makes a profit of 30% after offering a discount of 20% on his marked price. By what percentage did he mark his goods up before offering the discount?

A. 25%
B. 26%
C. 50%
D. 56%
E. 62.5%

Check this post on markup, discount and profit: https://www.veritasprep.com/blog/2011/0 ... nt-profit/

(1 + m/100)*(1 - d/100) = (1 + p/100)

(1 + m/100) * ( 1 - 20/100) = (1 + 30/100)

(1 + m/100) = 13/8 = ( 1 + 5/8)

m = 62.5

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Karishma
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Re: A merchant makes a profit of 30% after offering a discount of 20% on h  [#permalink]

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29 Jan 2019, 09:25
Bunuel wrote:
A merchant makes a profit of 30% after offering a discount of 20% on his marked price. By what percentage did he mark his goods up before offering the discount?

A. 25%
B. 26%
C. 50%
D. 56%
E. 62.5%

for such question use direct formula as given by VeritasKarishma

(1+m/100) * (1-d/100)= (1+p/100)
m= markup price %
d= discount price %
p = profit %

(1+m/100)* (1-20/100) = (1+ 30/100)

solve for m
62.5%
IMO E
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Target Test Prep Representative
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Posts: 4940
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Re: A merchant makes a profit of 30% after offering a discount of 20% on h  [#permalink]

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01 Feb 2019, 07:05
Bunuel wrote:
A merchant makes a profit of 30% after offering a discount of 20% on his marked price. By what percentage did he mark his goods up before offering the discount?

A. 25%
B. 26%
C. 50%
D. 56%
E. 62.5%

We can assume he bought the item for \$100 and sold it for \$130. If we let x = the marked price, we can create the equation:

0.8x = 130

x = 130/0.8

x = 162.5

We see that the marked price is \$162.5, which is a 62.5% markup from the price he paid for the item.

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Re: A merchant makes a profit of 30% after offering a discount of 20% on h   [#permalink] 01 Feb 2019, 07:05
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