The marked price of a laptop is 40% higher than the cost price. If it is sold after applying a discount of 20% on the

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Vincen: Legendary Member; Posts: 2898; Joined: Thu Sep 07, 2017 2:49 pmFollowed by: 5 members; Thanked: 6 times

by Vincen » Wed Jul 22, 2020 12:11 pm

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The marked price of a laptop is 40% higher than the cost price. If it is sold after applying a discount of 20% on the marked price, what is the profit % after selling the laptop?

A. 6%
B. 12 %
C. 18 %
D. 20 %
E. Cannot be determined

[spoiler]OA=B[/spoiler]

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Source: Beat The GMAT — Problem Solving | Wed Jul 22, 2020 12:11 pm

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8246; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

Re: The marked price of a laptop is 40% higher than the cost price. If it is sold after applying a discount of 20% on th

by Scott@TargetTestPrep » Sat Jul 25, 2020 2:25 pm

Vincen wrote: ↑
Wed Jul 22, 2020 12:11 pm
The marked price of a laptop is 40% higher than the cost price. If it is sold after applying a discount of 20% on the marked price, what is the profit % after selling the laptop?

A. 6%
B. 12 %
C. 18 %
D. 20 %
E. Cannot be determined

[spoiler]OA=B[/spoiler]

Solution:

We can let the cost price be c. Thus, the market price is 1.4c before the discount, and after the discount, the market price is 0.8 x 1.4c = 1.12c. We see that this is 12% more than the cost price, so the profit is 12%.

Answer: B

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