Sukman, it will be great if you post the answer choices; if you don't have answer choices then post OA.
Let CP = 100
Percentage = x%
Profit = 5
[ (100 + x) - 30( 100+x)/100 ] - 100 = 5
100(100+x) - 30(100+x) - 10000 = 500
10000 + 100x - 3000 - 30x - 10000 = 500
70x = 3500
x = 50
BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course
Redeem
Featured Course
Target Test Prep GMAT OnDemand
Scott Woodbury-Stewart’s private virtual classroom — 400 hours of master-class video lessons for the GMAT Focus Edition.
- 715+ score guarantee — highest in the industry (99th percentile)
- 52 chapters · 1,500+ lessons · 4,000+ practice questions
- 400 hours of video · 1,500+ instructor-led HD smartboard lessons
- 300,000+ students accepted to Harvard, Stanford, Wharton, Booth & Sloan & more
- 24/7 live support + weekly Zoom office hours with GMAT instructors
- TTP AI Assist — 24/7 AI-powered virtual tutor for instant help
- 1,200+ flashcards + AI-powered study assistant & daily calendar
- OnDemand, LiveTeach & GMAT Bootcamp formats available
- Also: GRE, SAT Math & Executive Assessment courses
- MBA Admissions Consulting now available
- 🏆 2025 EdTech Breakthrough Award: Test Prep Solution Provider of the Year
- 200,000+ students served
- 5-day free trial — $0 to start, no auto-billing, cancel anytime
★★★★★
5.0
(559 reviews)
130-pt guarantee
$0 to start
then $127/mo
Word Problem - Profit/Loss
Source: Beat The GMAT — Problem Solving |
-
theCodeToGMAT
- Legendary Member
- Posts: 1556
- Thanked: 448 times
- GMAT Score:650
-
GMATGuruNY
- GMAT Instructor
- Posts: 15539
- Location: New York, NY
- Thanked: 13060 times
- GMAT Score:790
I've added answer choices, which the GMAT would provide.sukhman wrote:A trader marks his good at a certain percentage over his cost price and then gives 30% discount, thereby making 5% profit. What is the markup percentage ?
40
50
60
70
80
Let the cost price = 100.
We can plug in the answer choices, which represent the required markup.
Answer choice C: 60
Regular selling price = cost price + markup = 100 + .6(100) = 160.
Price with a 30% discount = 160 - .3(160) = 112.
Resulting profit = (discounted price) - (cost price) = 112-100 = 12.
Profit percentage = profit/cost = 12/100 = 12%.
Too much profit.
To decrease the profit, the markup must be LOWER.
Eliminate C, D and E.
Answer choice B: 50
Regular selling price = cost price + markup = 100 + .5(100) = 150.
Price with a 30% discount = 150 - .3(150) = 105.
Resulting profit = (discounted price) - (cost price) = 105-100 = 5.
Profit percentage = profit/cost = 5/100 = 5%.
Success!
The correct answer is B.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
