Question

8. A furniture shop sells sofas for $880. If the shop wanted to offer the lower price of $640, what rate of markdown would it have to offer?

Answer 1

The rate of markdown it would have to offer is 27.3%.

Explanation:

The original price of sofa was, OP = $880.

The new price of sofa is, NP = $640

The change in price is:

`Change=OP-NP\\=880-640\\=240`

The rate of markdown offered by the shopkeeper is:

`Rate\ of\ markdown=(Change\ in\ Price)/(Orignal\ Price)*100 \\=(240)/(880)*100\\ =0.27273*100\\\approx27.3\%`

Thus, the rate of markdown offered by the shopkeeper is 27.3%.