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# A trader, While selling an item, was asking for such a price that woul

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Manager
Joined: 09 Jan 2016
Posts: 115
GPA: 3.4
WE: General Management (Human Resources)

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11 Sep 2017, 08:48
00:00

Difficulty:

45% (medium)

Question Stats:

63% (02:05) correct 38% (02:15) wrong based on 46 sessions

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 Senior Manager Joined: 02 Jul 2017 Posts: 293 Concentration: Entrepreneurship, Technology GMAT 1: 730 Q50 V38 Re: A trader, While selling an item, was asking for such a price that woul [#permalink] ### Show Tags 11 Sep 2017, 09:02 1 Let selling price be s and original cost price is c so trader giving 20% discount on selling price => price = 80% of s = 0.8s Now this price should give him 30% profit on cost. So price need to be equal to (1+30/100) c = 1.3c So trader wants 0.8s =1.3c As given c =$50
=> 0.8s = 1.3 *50
=> s= 81.25

Senior Manager
Joined: 19 Apr 2016
Posts: 274
Location: India
GMAT 1: 570 Q48 V22
GMAT 2: 640 Q49 V28
GPA: 3.5
WE: Web Development (Computer Software)

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11 Sep 2017, 09:04
81.25

Profit on cost price of 30% => 50*1.3=65

Now this profit will be after offering a discount of 20%
Therefore 65=0.8*x
X=81.25

Sent from my Redmi Note 4 using GMAT Club Forum mobile app
Director
Joined: 27 May 2012
Posts: 606

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07 Dec 2017, 04:25
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 Intern Joined: 12 Oct 2017 Posts: 40 Re: A trader, While selling an item, was asking for such a price that woul [#permalink] ### Show Tags 07 Dec 2017, 05:24 To make a profit of 30% on cost.=> the price must be: 50*1.3 =$65
However, he offer a 20% discount => $65 = 0.8*the asking price = 4/5 * asking price. => The asking price = 65*5/4. We don't have to calculate since we know that the price will be$X.25 =>only option B satisfies.
Re: A trader, While selling an item, was asking for such a price that woul &nbs [#permalink] 07 Dec 2017, 05:24
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