A shopkeeper decides to raise the marked price of an article by 40%. How much percentage discount should he allow to be able to sell the article at the original marked price?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. %.
Let the cost price of the article be 100x
So, Marked price = cost price × (100 + increment)%
⇒ 100x × 140% = 140x
Now, For selling the article at no profit and no loss he must sell the article at a cost price
So, discount = 140x - 100x = 40x
Discount % = Discount/Marked price × 100 = (40x/140x) × 100
⇒ (2/7) × 100 = %