A laptop is marked at a price 20% above its cost price. At what discount percentage should it be sold to make a 5% profit.
Show answer & explanation
Correct answer: B
Explanation
Correct answer is option 2 i.e. 12.5%
Discount = Marked Price - Selling Price
Discount (%) = (Discount/Marked Price) × 100
Let the cost price be 100x
Marked price = 120% of 100x = 120x
When the profit is 5%
Selling price = 105% of 100x = 105x
Discount = 120x - 105x = 15x
Discount % = (15x/120x) × 100 = 12.5%