Mathematics 2015 JAMB Past Questions - Question 26: 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?

Correct Answer

B

Explanation

Let assume the cost price is 100%Marked up price + cost price = 20 + 100 = 120%Discount at 20% = 20/100 × 120 % of cost priceSelling price = cost price − gain= (120 − 24)% of cost price= 96% of cost priceLoss = (100− 96)% of cost price= 4% of cost price∴ He will make 4% loss