A dealer allowed a discount of 20 percent on marked price of Rs. 72000 on an article and incurred a loss of 10 percent. What discount should he allow on the marked price, so that he gains Rs. 440 on the article?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 10.5 percent
A dealer allowed a discount of 20 percent on a marked price of Rs. 72000 on an article and incurred a loss of 10%
Cost Price = Marked Price × (100 - Discount)/(100 - Loss)
⇒ 72000 × (100 - 20)/(100 - 10)
⇒ 72000 × 80/90 = 64000 Rs
Now, he has gained 440 Rs
then SP = 64000 + 440 = 64440 Rs
Hence, Discount % = [(72000 - 64440)/72000] × 100 = 7560/720 = 10.5%