Chemerical71 wrote:

A trader, While selling an item, was asking for such a price that would enable him to of, a 20% discount and still make a profit of 30% on cost. If the cost of the item was $50 what was his asking price?

A. 65

B. 81.25

C. 85

D. 90

E. 78

Basically in this question, asking price is the S.P.

S.P - C.P = net profit ( main equation )

S.P or A.P = \(\frac{80}{100}\)* S.P.

C.P = 50

And Net Profit = 15

because net profit is 30 % of C.P. -> i.e. 30% of 50 = 15

Putting in main equation we get

\(\frac{80}{100}*\) S.P - 50 = 15

S.P or asking Price is 81.25

Hope it helps .

_________________

- Stne