Question

The cost of manufacturing a tape recorder is ₹ 1500. The manufacturer fixes the marked price 20% above the cost of manufacture. If the manufacturer wants to gain 8%, what is the rate of discount that can be allowed?

Options

• 20%

• 15%

• 11%

• 10%

Answer 1

10%

Explanation:

C.P. of tape recorder = ₹ 1500

Marked Price = ₹ `(1500 xx 120)/100` = ₹ 1800

If discount per cent be x% then 

`(1800 xx (100 - x))/100 = (1500 xx 108)/100`

⇒ 180000 - 1800 x = 1500 × 108

⇒  162000

⇒ 18x = 1800 - 1620 = 180

⇒ `x = 180/18 = 10%`