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Math Expert V
Joined: 02 Sep 2009
Posts: 56357

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Difficulty:   45% (medium)

Question Stats: 61% (01:51) correct 39% (01:27) wrong based on 23 sessions

### HideShow timer Statistics 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  D 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 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.

Intern  B
Joined: 14 Jan 2018
Posts: 18

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  G 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 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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Senior Manager  G
Joined: 22 Nov 2018
Posts: 491
Location: India
GMAT 1: 640 Q45 V35 GMAT 2: 660 Q48 V33 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  D 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 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 D 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 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 P 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 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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Abhishek....

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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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If you find one of my posts helpful, please take a moment to click on the "Kudos" button. 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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