# Questions On Mark-up/Down & Discounts

Append below some questions for students to practise on mark-up/down & discounts commonly use in trading (buying and selling):-

 FINANCIAL MATHEMATICS QUESTIONS ON MARK UP/DOWN/DISCOUNT 1. Mr. A bought product A at \$20 each and sells them at \$25 each. (a) What percentage profit on the cost price did he make? (b) Later on, he reduced the selling price by 5%. What percentage profit on the cost did he make? 2. Mr A sells a machine for \$25,800 making a gain of 72% on his cost price. (a) How much did he pay for the machine? (b) What was his profit? 3. Mr A’s one day’s taking is \$500 and he expects his margin to be 30%. Calculate his profit on that day 4. XYZ Ltd issues a price list of its goods. The retailer when buying from XYZ Ltd receives a discount of 25% off the list price. A customer buying these goods for cash at the list price from the retailer is allowed a 5% discount. Calculate the percentage profit that the retailer will make when he sells these goods for cash? 5. A trader marks his goods so as to show a profit of 40% of his outlay, but allows his customers a discount of 5% of the marked price if they pay cash. When dealing with cash customers, find: (a) the profit he makes on goods that cost his \$414 (b) the profit he makes on goods marked at \$189 © the price to the trader of goods marked at \$78.40 (d) the profit he makes as a percentage of the marked price 6. A dealer marks his goods at 20% above the price he pays, but allows a customer discount of 5% of the marked price of the goods. Find: (a) the price that a customer pays for goods that cost the dealer \$880 (b) the price that a customer pays for goods that cost the dealer \$880 © the cost to the dealer of goods for which a customer paid \$280.44 (d) the profit the dealer actually makes, if a customer receives gods marked at \$800, but goes bankrupt and can only pay 95 cent in the \$ 7. If the manufacturer of a product adds a mark-up of 25% the wholesaler a mark-up of 30% and the retailer a mark-up of 50%, what was the cost of manufacture of the product when the retail price was \$78?