A mobile is marked at a price 25% above its cost price. At what discount percentage it should be sold to make a 5% profit?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 16%.
Let the cost price(CP) be ₹100
MP(Marked price) = 100 + 25% of 100 = 100 + 25 = ₹125
SP(selling price) = 100 + 5% of 100 = 100 + 5 = ₹105
Discount = MP - SP
⇒ 125 - 105 = ₹20
Doscount% = 20/125 × 100 = 16%