A shopkeeper offers two successive discounts of 15% and 20% on an article and is still able to earn a 70% profit. If he offers a single discount of 30%, what will his profit percentage be?
Show answer & explanation
Correct answer: B
Explanation
the correct answer is option 2 i.e 75%
Let's assume the MRP of the article is 100y.
A shopkeeper offers two successive discounts of 15% and 20% on an article.
Selling price of the article = 100y of (100-15)% of (100-20)%
= 100y of 85% of 80%
= 100y × 85/100 × 80/100
= 68y
He is still able to earn a 70% profit.
Cost price of the article = 68y/(100 + 70)×100
= 68y/170 × 100
= 40y
If he offers a single discount of 30%, then selling price = 100y of (100 - 30)%
= 100y of 70%
= 70y
New profit percentage= (70y - 40y)/40y × 100
= (30y/40y) × 100
= 75%