Jacob marks his goods up by 75% and then offers a discount on the marked price. The profit that he makes after offering the discount is 40%. What % discount did Jacob offer? A. 15% B. 20% C. 25% D. 35% E. 75% Is there a strategic approach to this question? OA B

lheiannie07 wrote:Jacob marks his goods up by 75% and then offers a discount on the marked price. The profit that he makes after offering the discount is 40%. What % discount did Jacob offer? A. 15% B. 20% C. 25% D. 35% E. 75% Is there a strategic approach to this question? OA B I think we should not think of strategic approach on simple questions. Just do it in the following way: If 100 is the cost of the goods he will mark them as 175 and sell them at 140. therefore discount offered would be 175-140=35 on marked price 175. Hence percentage discount offered = 35*100/175=20 Therefore option B is correct.

Hi lheiannie07, We're told that Jacob marks his goods up by 75% and then offers a discount on the marked price - and this results in a profit of 40% (after offering the discount). We're asked for the percent discount that Jacob offered. This question can be solved by TESTing VALUES. IF.... Original Price = $100 Markup Price = $100 + (.75)($100) = $175 'Discount' Price = $100 + (.4)($100) = $140 We're asked for the Percent Change, so we'll need the Percentage Change Formula: (New - Old)/(Old) = ($140 - $175)/$175 = -$35/$175 = -1/5 = 20% discount. Final Answer: B GMAT assassins aren't born, they're made, Rich

BTGmoderatorDC wrote:Jacob marks his goods up by 75% and then offers a discount on the marked price. The profit that he makes after offering the discount is 40%. What % discount did Jacob offer? A. 15% B. 20% C. 25% D. 35% E. 75% Is there a strategic approach to this question? OA B We can let the cost of the goods to Jacob be 100, so the marked price is 1.75 x 100 = 175. Since he still makes 40% profit after the discount, the discounted price is 1.4 x 100 = 140. Since 140/175 = 0.8 = 80% (that is, the discounted price is 80% of the marked price), the discount must be 20% (so that the discounted price is 80% of the marked price). Answer: B

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