A dealer buys a guitar for ₹1,000. He offers successive discounts of 20% and 10% on the marked price and still wants a profit of 8%. By what percentage above cost must he mark the guitar?

Explanation

1. 01

   Required SP = 1.08 × ₹1,000 = ₹1,080.

2. 02

   Fraction paid after both discounts = $0.8 \times 0.9 = 0.72$.

3. 03

   MP = ₹1,080 ÷ 0.72 = ₹1,500.

4. 04

   MP is ₹500 above cost, that is 50%.