A businessman allows a discount of 5% for cash payment. How much percent above the cost price should be marked to make a gain of 14%:
Q1. A businessman allows a discount of 5% for cash payment. How much percent above the cost price should be marked to make a gain of 14%:
Answer: 20%
Explanation: With a 5% cash discount, the selling price is 95% of the marked price. To achieve 14% profit on cost, the marked price must be 114/0.95 ≈ 120% of cost, which is 20% above cost price.