Question 1

A retailer buys a product for ₹400 and marks it up by 50%. What is the marked price?

Accepted Answer

Step 1: Cost Price (CP) = ₹400. Step 2: Markup = 50% of ₹400 = (50/100) × 400 = ₹200. Step 3: Marked Price (MP) = CP + Markup = 400 + 200 = ₹600.

Question 2

A shopkeeper marks an article at ₹500. He offers a discount of 20% on the marked price. What is the selling price?

Accepted Answer

Step 1: Marked Price (MP) = ₹500. Step 2: Discount = 20% of ₹500 = (20/100) × 500 = ₹100. Step 3: Selling Price (SP) = MP − Discount = 500 − 100 = ₹400.

Question 3

A shopkeeper buys an article for ₹250 and wants to make a profit of 40%. If he gives a discount of 20% on the marked price, what should be the marked price?

Accepted Answer

Step 1: Cost Price (CP) = ₹250. Step 2: For 40% profit, Selling Price (SP) = CP × (1 + 40/100) = 250 × 1.4 = ₹350. Step 3: If discount = 20%, then SP = MP × (1 − 20/100) = MP × 0.8. Step 4: 350 = MP × 0.8, so MP = 350/0.8 = ₹437.50.

Question 4

A merchant offers two successive discounts of 10% and 20% on an article marked at ₹1000. What is the final selling price?

Accepted Answer

Step 1: Marked Price (MP) = ₹1000. Step 2: After first discount of 10%: Price = 1000 − (10% of 1000) = 1000 − 100 = ₹900. Step 3: After second discount of 20% on ₹900: Price = 900 − (20% of 900) = 900 − 180 = ₹720. Alternatively: Final SP = MP × (1 − 0.1) × (1 − 0.2) = 1000 × 0.9 × 0.8 = ₹720.

Question 5

A shopkeeper offers a discount of 20% on the marked price of an article. Even after giving this discount, he makes a profit of 25%. If the cost price is ₹480, what is the marked price?

Accepted Answer

Step 1: For 25% profit, SP = CP × 1.25 = 480 × 1.25 = ₹600. Step 2: If 20% discount is given on MP, then SP = MP × (1 - 0.20) = MP × 0.80. Step 3: Therefore, 600 = MP × 0.80, so MP = 600 / 0.80 = ₹750.

Question 6

A merchant marks goods 60% above the cost price. He gives a discount of 25% on the marked price. What is his profit percentage?

Accepted Answer

Step 1: Let CP = ₹100. Then MP = 100 + (60% of 100) = 100 + 60 = ₹160. Step 2: Discount = 25% of MP = 25% of 160 = ₹40. Step 3: SP = MP - Discount = 160 - 40 = ₹120. Step 4: Profit = SP - CP = 120 - 100 = ₹20. Step 5: Profit % = (20/100) × 100 = 20%.

Question 7

A retailer buys goods at ₹2000 per unit. He wants to earn a profit of 40% after giving a discount of 20% on the marked price. What should be the marked price per unit?

Accepted Answer

Step 1: For 40% profit, SP = CP × (1 + 0.40) = 2000 × 1.40 = ₹2800. Step 2: If discount is 20% on MP, then SP = MP × (1 - 0.20) = MP × 0.80. Step 3: Therefore, 2800 = MP × 0.80, so MP = 2800 / 0.80 = ₹3500.

Question 8

A trader buys an article for ₹1000. He marks it up by 60% and offers a discount of 45%. He then realizes he made a loss of 12%. Later, he increases the marked price by 25% and offers a discount of 35%. What is his profit percentage in the second scenario?

Accepted Answer

Step 1: CP = 1000, MP₁ = 1000 × 1.60 = 1600. Step 2: SP₁ = 1600 × (1 − 0.45) = 1600 × 0.55 = 880. Step 3: Loss = 1000 − 880 = 120, loss% = 12%. Step 4: MP₂ = 1600 × 1.25 = 2000. Step 5: SP₂ = 2000 × (1 − 0.35) = 2000 × 0.65 = 1300. Step 6: Profit = 1300 − 1000 = 300. Step 7: Profit% = (300 / 1000) × 100 = 30%.

Question 9

A shopkeeper marks up goods by 80% above cost price. He then offers two successive discounts of 25% and 20% on the marked price. If the final selling price is ₹432, what is the cost price?

Accepted Answer

Step 1: Let CP = x. Then MP = x + 0.80x = 1.80x. Step 2: After first discount of 25%, price = 1.80x × 0.75 = 1.35x. Step 3: After second discount of 20%, price = 1.35x × 0.80 = 1.08x. Step 4: Given 1.08x = 432, so x = 400. Therefore, cost price is ₹400.

Question 10

A merchant sells an article at a loss of 12%. Had he sold it for ₹92 more, he would have made a profit of 8%. If he now offers a discount of 15% on the marked price to achieve the original selling price, what is the marked price?

Accepted Answer

Step 1: Let CP = x. At 12% loss, SP₁ = 0.88x. At 8% profit, SP₂ = 1.08x. Step 2: SP₂ − SP₁ = 92, so 1.08x − 0.88x = 92 ⟹ 0.20x = 92 ⟹ x = 460. Step 3: Original SP = 0.88 × 460 = 404.80. Step 4: If 15% discount on MP gives SP of 404.80, then 0.85 × MP = 404.80 ⟹ MP = 476.24 ≈ ₹476 (or exactly ₹476 if we work backwards: MP = 404.80 ÷ 0.85 = 476).

Question 11

A shopkeeper offers a discount of 10% on marked price. A customer further negotiates and gets an additional 5% discount on the discounted price. The customer pays ₹513. If the shopkeeper makes a 14% profit on cost price, what is the cost price?

Accepted Answer

Step 1: Let MP = x. After 10% discount: Price = 0.90x. After additional 5% discount: Final price = 0.90x × 0.95 = 0.855x. Step 2: Given 0.855x = 513, so x = 513 / 0.855 = 600. Step 3: MP = 600. Step 4: SP = 513. Step 5: If profit is 14%, then SP = CP × 1.14, so 513 = CP × 1.14 ⟹ CP = 513 / 1.14 = 450.

Question 12

A vendor marks goods at 60% above cost price. He gives a discount of 25% on the marked price to the first customer and sells at that discounted price. For the second customer, he increases the marked price by 20% (from the original marked price) but gives a discount of 30%. If the second customer pays ₹432 more than the first customer, what is the cost price?

Accepted Answer

Step 1: Let CP = x. MP₁ = 1.60x. Step 2: SP₁ = 1.60x × 0.75 = 1.20x. Step 3: MP₂ = 1.60x × 1.20 = 1.92x. Step 4: SP₂ = 1.92x × 0.70 = 1.344x. Step 5: SP₂ − SP₁ = 432, so 1.344x − 1.20x = 432 ⟹ 0.144x = 432 ⟹ x = 3000.

SBI Clerk Discount & MP

Discount & MP— Rules & Concept

Key Points to Remember

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Discount & MP — Practice Questions

60-Second Revision — Discount & MP