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The cost of manufacture of a tape recorder is $ 1,500. The manufacturer fixes the marked price 20% above the cost of manufacture and allows a discount in such a way as to get a profit of 8%. The rate of discount is
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- 12%
- 8%
- 20%
- 10%
Correct Option: D
Given that , The cost of manufacture of a tape recorder = $ 1,500
| Marked price of tape recorder = | = $ 1800 | 100 |
| Gain = | = $ 120 | 100 |
Discount = 1800 – (1500 + 120) = $ 180
Let Discount percent = y%, then
| = 180 | 100 |
⇒ y = 10%
Second method to solve this question :
If the discount be d%, then
| 20 – d – | = 8 | 100 |
| ⇒ 20 - | = 8 | 5 |
| ⇒ | = 20 – 8 = 12 | 5 |
| ⇒ d = | = 10% | 6 |
