CAT 2017 Slot 1 QA Question & Solution

ArithmeticEasy

If a seller gives a discount of 15% on retail price, she still makes a profit of 2%. Which of the following ensures that she makes a profit of 20%?

Give a discount of 5% on retail price.

Give a discount of 2% on retail price.

Increase the retail price by 2%.

Sell at retail price.

Let the retail price be M and cost price be C.

Given,

0.85 M = 1.02 C

M = 1.2 C

If he wants 20% profit he has to sell at 1.2C, which is nothing but the retail price.