Question

9. A computer company gives a discount of 10 % on a new piece of software. If it makes a profit of 7%, what percent does the marked price exceed the cost price?

Answer 1

original price = P
discounted price = 90% of P = 0.9P
profit % = (sale price-cost)/cost
(0.9P - cost)/cost = 0.07
0.9P -cost = .07*cost
0.9P = 1.07*cost
P = 1.1888*cost
original price is 18.8% greater than cost price