Question

In an auction, an auctioneer marked the price of a painting so as to include a profit of 50% but allowed a discount of 16% on marked price. What was the actual price?
1. 16%
2. 26%
3. 15%
4. 25%

Answer 1

Correct Answer - Option 2 : 26%

Given∶

He marked the price of a painting so as to include a profit of 50%

He also allowed a discount of 16% on marked price.

Formula Used∶

S.P. = M.P. - Discount

Profit = S.P. - C.P.

Calculation∶

M.P. = C.P. + 50% of C.P. = 1.50 C.P.

Discount of 16% is on this M.P.

Discount = 16% of 1.50 C.P. = 0.24 C.P.

Also, S.P. = M.P. - Discount

So, S.P. = 1.50 - 0.24 = 1.26 C.P.

Profit = S.P. - C.P. = 1.26 - 1 = 0.26 = 26%

∴ The actual profit was of 26%.