A merchant paid $60 or a desk. He wished to put a price tag on it so that he could offer his customers a discount of 10% of the price marked on the tag and still make 20% pf the cost. What price should he make the tag?

(A) $72
(B) $78
(C) $79.5
(D) $80
(E) $85

Is it D?

Question

A merchant paid $60 or a desk. He wished to put a price tag on it so that he could offer his customers a discount of 10% of the price marked on the tag and still make 20% pf the cost. What price should he make the tag?

(A) $72
(B) $78
(C) $79.5
(D) $80
(E) $85

Is it D?

mertsj · Answer

If he wants to make 20% profit he has to end up with $72 after the discount.

ddcamp · Answer

20% profit from 60 would be $72 (The "discount" price)
if $72 = 0.9 × (marked price) = 80, so yes, D

ddcamp · Answer

That was some really bad notation on my part...
if 72 = 0.9 × (marked price), then (marked price) = 80