A dealer allows 36% discount on the marked price of an article and still gains 28%. If the cost price of the article is reduced by 10%, how much discount percent should he allow now so as to get the same percentage of profit as before?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 42.4%.
Let MP = ₹100
Initial discount = 36% , so SP = ₹64
Profit = 28% , so CP = 64/1.28 = ₹50
New CP = 10% less so, ₹45
New SP = 1.28 × 45 = ₹57.60
New discount = 100 − 57.60 = 42.40
So, discount % = (42.40/100) × 100 = 42.4%