By how much percent a shopkeeper must mark his goods above its cost price so as by giving 30% discount, he earns a profit of 40%.
Answer & explanation
Correct answer: option 4
C.P. : MRP = (100 - Discount)% : (100 + Profit)%
= (100 - 30)% : (100 + 40)%
= 70% : 140%
= 7 : 14
= 1 : 2
C.P. = 1R
MRP = 2R
So, shopkeeper marks up his goods by = \(\frac{2R\;-\;1R}{1R}\)× 100% = 100%