A shopkeeper marks his goods 30% higher than the cost price and allows a discount of 10% on the marked price. In order to earn 6.5% more profit, what discount percent should he allow on the marked price?
Answer & explanation
Correct answer: option 4
Let the cost price = 100
then the marked price = 130
Discount offered = 10%
Selling price = 90% of 130 = 117
Now, it is required to earn 6.5% more profit then the selling price will be,
SP = 117 + 6.5 = 123.5
Now the discount offered will be = 130 - 123.5 = 6.5%
Discount% = \(\frac{6.5 × 100}{130}\) = 5%