# CRE 2 - Discount | Arithmetic - Profit & Loss

**CRE 2 - Discount | Arithmetic - Profit & Loss**

A trades man charges 20% above cost price. He then allows a discount of 10%. After the whole transaction what will be his gain% or loss%?

- A.
12% loss

- B.
10% gain

- C.
8% gain

- D.
None of these

Answer: Option C

**Explanation** :

Let CP = 100

Marked price = 120

Discount = 120 × 10/100 = Rs. 12

Final SP = 120 – 12 = 108 Rs.

∴ Profit = 108 – 100 = 8%

Hence, option (c).

Workspace:

**CRE 2 - Discount | Arithmetic - Profit & Loss**

A merchant marked his goods 20% above the cost price and sold the goods at a profit of 8%. The rate % of discount is:

- A.
12%

- B.
10%

- C.
15%

- D.
8%

Answer: Option B

**Explanation** :

Let the CP be x then, MP = 1.2 x

SP = 1.08 x if y% discount is allowed, then (1.2 x) (1 – y%) = 1.08 x

⇒ (1 – y) = 0.9

⇒ y = 0.1 or 10%

Hence, option (b).

Workspace:

**CRE 2 - Discount | Arithmetic - Profit & Loss**

Two shopkeepers sell the machines at the same list price. The first allows two successive discounts of 30% and 6%; and the second 20% and 16%. Which discount series is more advantageous to the purchaser?

- A.
305 and 6%

- B.
20% and 16%

- C.
Both have same value

- D.
None of these

Answer: Option A

**Explanation** :

Let the marked price be M

Case I :Shopkeeper No. 1 SP= (0.7) M × (0.94) = 0.658 M

Case I :Shopkeeper No. 2 SP= (0.8) M × (0.84) = 0.672 M

Discount in case I = (1 – 0.658) > discount in case II = (1 – 0.672)

Hence, option (a).

Workspace:

**CRE 2 - Discount | Arithmetic - Profit & Loss**

The cost price of an article is 80% of its marked price. The dealer allows 15% discount on the marked price. Find the gain or loss percent?

- A.
25%

- B.
10%

- C.
6.25%

- D.
8.5%

Answer: Option C

**Explanation** :

Let the marked price be m

Then, CP = 0.8 m and SP = 0.85 m

gain % = (0.85m - 0.8m)/(0.8m) = (0.05m)/(0.8m) = 0.0625 = 6.25%

Hence, option (c).

Workspace:

**CRE 2 - Discount | Arithmetic - Profit & Loss**

A sewing machine with a marked price of Rs. 400 was being sold at a 10% discount for cash payment and during the stock clearance a further discount was offered so that the machine now cost Rs. 342. What was the second discount offered?

- A.
2.5%

- B.
5%

- C.
7.5%

- D.
8%

Answer: Option B

**Explanation** :

If x is the second discount then, (0.9)(400)(1-x)=342

360 – 360 x = 342

⇒ x = 18/360 = 0.05 or 5%

Hence, option (b).

Workspace:

**CRE 2 - Discount | Arithmetic - Profit & Loss**

Successive discounts of 30%, 25% and 20% are equivalent to a single discount of

- A.
58%

- B.
40.33%

- C.
41.24%

- D.
51.26%

- E.
None of these

Answer: Option A

**Explanation** :

Selling Price = 0.7 × 0.75 × 0.8 = 0.42 = 42%.

Therefore single discount = 100 – 42 = 58%.

Hence, option (a).

Workspace:

**CRE 2 - Discount | Arithmetic - Profit & Loss**

The difference between the discounts of 30% on Rs. 1000 and two successive discounts of 20% and 10 % on the same price is

- A.
Nil

- B.
Rs. 20

- C.
Rs. 16.30

- D.
Rs. 11.85

- E.
None of these

Answer: Option B

**Explanation** :

The 20% and 10% successive discounts equal to

-20 - 10 + 200/100 = -28%

The difference = 30 – 28 = 2%

∴ 2% of 1000 = Rs. 20

Hence, option (b).

Workspace:

**CRE 2 - Discount | Arithmetic - Profit & Loss**

At what percentage above the cost price must an article be marked so as to gain 36% after allowing a discount of 15%?

- A.
60%

- B.
36%

- C.
39%

- D.
27.5%

- E.
None of these

Answer: Option A

**Explanation** :

MP = CP ((100 + Profit percentage))/((100 - Discount percentage))

MP = CP × 136/85 = 1.6 CP

∴ The MP should be 60% above the CP

Hence, option (a).

Workspace:

**CRE 2 - Discount | Arithmetic - Profit & Loss**

A trader allows two successive discounts of 30% and 15%. If he sells the article for Rs.357, then the marked price of the article is

- A.
Rs. 420

- B.
Rs. 546

- C.
Rs. 755

- D.
Rs. 600

- E.
None of these

Answer: Option D

**Explanation** :

Net discount = -30 – 15 + 450/100 = 40.5%

SP = MP × ((100 - Discount%))/100

357 = MP × 59.5/100

⇒ MP = Rs. 600.

Hence, option (d).

Workspace:

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