15% of the marked price of an item is equal to 25% of its cost price. If a discount of 25% is given on the sale of the item, then what will be the profit percentage?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 25%
Profit = SP - CP
Profit% = (Profit/CP) × 100
According to the question;
⇒ 15% of MP = 25% of CP
⇒ MP/CP = 5/3
Let MP and CP be 100x and 60x
When 25% discount is given,
SP = 75% of 100x = 75x
Profit = 75x - 60x = 15x
Profit% = (15x/60x) × 100
= 25%