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JAMB Mathematics 2015 Paper

Question : 59

Total: 61

A public car dealer marked up the cost of a car at 30% in an attempt to make 20% gross profit. Due to the value of dollar, he now placed 20% discount on the car. What profit or loss will he make?

Validate

Solution:

Concept:

A markup is added to the cost price first, then a discount is applied to the marked price. The final selling price determines the overall profit or loss.

Explanation:

Let the cost price be

\mathrm{CP} = 100\%

Adding a

30\%

markup gives the marked price:

\mathrm{MP} = 100\% \times (1 + 30\%) = 130\%

Now a

20\%

discount is placed on this marked price:

\mathrm{SP} = 130\% \times (1 - 20\%) = 130\% \times 80\% = 104\%

So the selling price is

104\%

of the cost price, which is above the original

100\%

Therefore, he makes a profit of:

104\% - 100\% = 4\%

Answer:

He makes a profit of

4\%

, so the correct option is C (4%).

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