What percentage above the cost price should a seller mark his goods so that, after allowing a discount of 20% on the marked price, he can earn a profit of 4%?
Answer & explanation
Correct answer: option 4
CP MP
100 - D% 100 + P%
100 - 20% 100 + 4%
80 104
The percentage at which he marks up the CP = ( 104 - 80 ) × \(\frac{100}{80}\) = 30%