CAT Exam Model Paper 3 with solutions for free online practice

Question : 81 of 100

Marks: +1, -0

In the Bargain Bazar everyone purchase with a fair bargaining, so traders markup the prices too much. A trader marked up an article at ? M expected huge profit, if it is sold on the marked price. But a customer purchased it at M/2 with his fine bargaining skills, so the expected profit of the trader diminished by 66.66%.What is the percentage discount fetched by the customer through bargaining?

Your Answer:

Validate

Solution:

Let the CP be 100 and % markup be k% then MP = 100 + k
Actual SP =

{100 + k}/2

∴

({100 + k}/2)/k=200/3=66.66%

⇒ k = 300
Therefore, CP = 100 , MP = 400 (initially)
Finally, SP =

400/2=200

∴ Discount =

200/400×100=50%

Alternatively MP → M
SP →

M/2

Discount (%) =

(M/2)/M×100=50%

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