Word Problem 1 (Profit calculation on marked price basis)
Problem 1: How much percent a tradesman increase on to the cost price to his goods so that he may make a net profit of 10% after allowing a customer a discount of 4% of his bill ?
a. 14-7/12% b. 16-1/2% c. 20% d. 19-1/2%
(word problems on job exam mathematics.)
We suppose her that Cost Price is ‘y’
First we will calculate Selling Price SP by using Profit formula
We know that;
But Profit is 10% of cost price i-e
Put values in above relation
This is selling price !
Now we will calculate Marked Price MP using Discount formula;
Formula for Discount percentage is ;
in short we write
Now discount %age is given to be 4%
But We have calculated above
This is marked price !
Now finally we can calculate sought increase in Cost Price CP using formula
Putting values of MP and CP and simplifying
So the option ‘a’ is correct