A shopkeeper gains 20% when he sells an article at a 20% discount on its market price. If the cost price of the article is reduced by 20% and he wants to earn a profit of 26%, then how much percent discount should he give on the same marked price of the article?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 32.8%.
Let MP = 100
20% discount: SP = 80
Profit 20%: CP = =
New CP = × =
Required profit = 26%
New SP = × = 67.20
Discount = 100 - 67.20 = 32.8%