What is the maximum percentage discount (approximately) that a merchant can offer on his marked price, so that he ends up selling at no profit or loss, if he initially marked his goods up by 40%?
Correct Answer: 28.5%
Explanation:
Let cost price = ₹ 100
And marked price = 100 + 40 = ₹ 140
Let required discount be R %. According to the question,
140 x (100 - R)/100 = 100
⇒ 100 - R = (100 x 100) / 140
∴ R = 100 - (100 x 100) / 140
= (40 x 100) / 140
= 28.5 % (approx)
