To gain 8% after allowing a discount of 10%, by what percent must the marked price be hiked from the cost price?

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  1. 19%
  2. 11%
  3. 18%
  4. 20%

Answer (Detailed Solution Below)

Option 4 : 20%
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Detailed Solution

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Given:

Gain = 8%

Discount = 10%

Formula used:

SP = CP + 8% of CP

SP = MP - 10% of MP

Calculation:

0.9x = 108

⇒ x = 120

Hike = (120 - 100)/100 × 100 = 20%

∴ Marked price must be hiked by 20% from the cost price.

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