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Problem solving

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by Noman » Sat Jan 23, 2016 8:34 am
plz explain
By selling an article at 80% of its marked price, a merchant makes a loss of 12%. what will be the profit or loss made by the merchant if he sells the article at 95% of its marked price
A. 5% profit B.1% loss C.5.5% profit D.4.5% profit E.8% profit
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Source: — Problem Solving |

by MartyMurray » Sun Jan 24, 2016 4:23 am
Let's make this one easy by picking some easy numbers.

Make the marked price $100. So 80% of the marked price is $80.

In selling the article the merchant loses 12%.

A loss is the negative difference between the selling price and the wholesale price.

So $80 is 12% below the wholesale price, and $80 is 88% of the wholesale price.

Wholesale Price = 80/.88 = 10/.11 = 1000/11 = approx 91.

95% of the marked price is $95.

95 - 91 = 4. So he makes a $4 profit.

4/91 = (40/9.1)/100 = approx .045

The correct answer is D.
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