The best place to practice for CAT Exam is CAT previous year paper. This question is from CAT profit and loss. **2IIM CAT Question Bank** provides you with CAT question that can help you to gear for CAT 2021 Exam. After giving a discount how can the seller make a profit? It is time to have a go at this question.

Question 6 : If a seller gives a discount of 15% on retail price, she still makes a profit of 2%. Which of the following ensures that she makes a profit of 20% ?

- Give a discount of 5% on retail price
- Give a discount of 2% on retail price
- Increase the retail price by 2%
- Sell at retail price

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Given that if a seller gives a discount of 15% on retail price, she still makes a profit of 2%.

Let us assume marked price to be x. So, selling price to be 0.85x on giving 15% discount on retail price she still makes a profit of 2%.

We have to find which of the following options ensures that she makes a profit of 20% so the discount should be much lower.

⟹ \\frac{0.85}{1.02}) × 1.20 = 1

Hence by selling at retail price she makes a profit of 20%.

The question is **"If a seller gives a discount of 15% on retail price, she still makes a profit of 2%. Which of the following ensures that she makes a profit of 20% ?" **

Choice D is the correct answer.

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