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

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Math Expert
Joined: 02 Sep 2009
Posts: 56357

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18 Jun 2019, 00:39
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45% (medium)

Question Stats:

61% (01:51) correct 39% (01:27) wrong based on 23 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 _________________ VP Joined: 31 Oct 2013 Posts: 1394 Concentration: Accounting, Finance GPA: 3.68 WE: Analyst (Accounting) Re: A trader, While selling an item, was asking for such a price that woul [#permalink] ### Show Tags 18 Jun 2019, 01:05 1 Bunuel 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

Discount = 20%

Profit Margin = 30%

Cost price = 50.

Selling Price = 50 * 130% = 50 * 130/100 = 65.

65 is basically selling price after charging the discount . It means 65 is 80% of asking price.

Asking Price = 65/80 * 100 = 81.25.

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Joined: 14 Jan 2018
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18 Jun 2019, 01:53
KSBGC wrote:
Bunuel 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 Discount = 20% Profit Margin = 30% Cost price = 50. Selling Price = 50 * 130% = 50 * 130/100 = 65. 65 is basically selling price after charging the discount . It means 65 is 80% of asking price. Asking Price = 65/80 * 100 = 81.25. B is the correct answer. I believe the question is just asking for Selling Price. I mean a price which would result in both the discount and profit at the same time. Please correct me if I am wrong. Thank you. _________________ If you have come so far, then GMAT is the only way out. Senior Manager Joined: 22 Nov 2018 Posts: 491 Location: India GMAT 1: 640 Q45 V35 GMAT 2: 660 Q48 V33 Re: A trader, While selling an item, was asking for such a price that woul [#permalink] ### Show Tags 18 Jun 2019, 02:30 Bunuel 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

Cost =50$so for 30% profit he must sell it at 50*1.3=65$

If 65% is after 20% discount then price before discount is 65/80%=81.25 IMO B
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Joined: 22 Nov 2018
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Location: India
GMAT 1: 640 Q45 V35
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18 Jun 2019, 02:32
Jansaida wrote:
KSBGC wrote:
Bunuel 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 Discount = 20% Profit Margin = 30% Cost price = 50. Selling Price = 50 * 130% = 50 * 130/100 = 65. 65 is basically selling price after charging the discount . It means 65 is 80% of asking price. Asking Price = 65/80 * 100 = 81.25. B is the correct answer. I believe the question is just asking for Selling Price. I mean a price which would result in both the discount and profit at the same time. Please correct me if I am wrong. Thank you. Jansaida from Stem"while selling an item, was asking for such a price" so requirement is before discount _________________ Give +1 kudos if this answer helps..!! GMAT Club Legend Joined: 18 Aug 2017 Posts: 4269 Location: India Concentration: Sustainability, Marketing GPA: 4 WE: Marketing (Energy and Utilities) Re: A trader, While selling an item, was asking for such a price that woul [#permalink] ### Show Tags 18 Jun 2019, 10:29 Bunuel 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

simply do reverse calculation as to what could have got the trader to sell at 50$50*1.3=65$
65/0.8 = 81.25 $IMO B _________________ If you liked my solution then please give Kudos. Kudos encourage active discussions. LBS Moderator Joined: 04 Jun 2018 Posts: 587 Location: Germany Concentration: General Management, Finance GMAT 1: 730 Q47 V44 GPA: 3.4 WE: Analyst (Transportation) Re: A trader, While selling an item, was asking for such a price that woul [#permalink] ### Show Tags 18 Jun 2019, 10:34 Minor typo: "him to of, a 20% discount" First step: We have to identify the profit: C (50) * 1.3 (30% Profit) = 65 Then we identify the discount: 65 (Selling price after discount) : 0.8 (20% discount offered on initial price) = 81.25 AC B! _________________ Board of Directors Status: QA & VA Forum Moderator Joined: 11 Jun 2011 Posts: 4512 Location: India GPA: 3.5 WE: Business Development (Commercial Banking) Re: A trader, While selling an item, was asking for such a price that woul [#permalink] ### Show Tags 18 Jun 2019, 12:52 Bunuel 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

CP + P = SP = MP - D

Or, $$50 + 30$$% of $$50$$ = SP = $$\frac{100 - 20}{100}*MP$$

Or, 65 = SP = $$\frac{80}{100}*MP$$

Or, 65 = $$\frac{80}{100}*MP$$

Or, MP = 81.25 , Answer must be (B)
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21 Jun 2019, 11:38
Bunuel 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

We can create the equation:

P = 0.3C

0.8R - C = 0.3C

0.8R = 1.3C

8R = 13(50)

8R = 650

R = 81.25

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Re: A trader, While selling an item, was asking for such a price that woul   [#permalink] 21 Jun 2019, 11:38
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