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In order to give his customers a 25-percent discount on the price and

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In order to give his customers a 25-percent discount on the price and [#permalink]

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New post 10 Feb 2017, 07:28
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Difficulty:

  55% (hard)

Question Stats:

66% (01:30) correct 34% (01:51) wrong based on 68 sessions

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In order to give his customers a \(25-percent\) discount on the price and still net a \(25-percent\) profit on the cost of an item, at what price should a merchant mark an item if it cost him \($16.80\)?

(A) \($21.00\)
(B) \($21.90\)
(C) \($25.20\)
(D) \($26.25\)
(E) \($28.00\)
[Reveal] Spoiler: OA

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Re: In order to give his customers a 25-percent discount on the price and [#permalink]

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New post 10 Feb 2017, 07:43
ziyuenlau wrote:
In order to give his customers a \(25-percent\) discount on the price and still net a \(25-percent\) profit on the cost of an item, at what price should a merchant mark an item if it cost him \($16.80\)?

(A) \($21.00\)
(B) \($21.90\)
(C) \($25.20\)
(D) \($26.25\)
(E) \($28.00\)



so finally he should have 25% profit over $16.8 which is 16.8(1+25/100)= $21
but this $21 is discounted price of SP say x at 25%
again x(1-25/100) = 21
thus x=$28

Ans E

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Re: In order to give his customers a 25-percent discount on the price and [#permalink]

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New post 10 Feb 2017, 09:31
ziyuenlau wrote:
In order to give his customers a \(25-percent\) discount on the price and still net a \(25-percent\) profit on the cost of an item, at what price should a merchant mark an item if it cost him \($16.80\)?

(A) \($21.00\)
(B) \($21.90\)
(C) \($25.20\)
(D) \($26.25\)
(E) \($28.00\)


Cost Price + Profit = Selling Price = Marked Price - Discount

Now, here Selling Price will be 16.80*125/100 = 21

Now, at this point we have here , Selling Price which is 75% of Marked Price...

So, Marked Price = 21/0.75

Or, Marked Price = 28.00

Hence Correct answer must be (E) 28

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In order to give his customers a 25-percent discount on the price and [#permalink]

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New post 18 Sep 2017, 11:40
In order to give his customers a 25−percent25−percent discount on the price and still net a 25−percent25−percent profit on the cost of an item, at what price should a merchant mark an item if it cost him $16.80?

(A) $21.00
(B) $21.90
(C) $25.20
(D) $26.25
(E) $28.00

Do it in steps:

Given: Cost price : $16.80

Final result to achieve is "to gain 25%" of cost price

so keeping end result in mind find the 25% of Cost price = $16.80*(25/100) =$16.80 *(1/4) = $4.20

Now add the profit in the cost price=$16.80+$4.20= $21.00

Now you should use the options that is when you apply discount of 25% on any of the option and if it gives you $21.00 as a result then it is your answer:

if you give the discount of 25 % on $28.00= $28.00 - $28.00 (25/100) = $28.00 -$7.00 = $21.00

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In order to give his customers a 25-percent discount on the price and   [#permalink] 18 Sep 2017, 11:40
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