A shopkeeper sells his goods at a 12% profit after marking them up by 20%. What is the discount percentage?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 6.66%.
The marked price is increased by 20% over the cost price:
M.P. = C.P. + 20% of C.P.
here C.P. = 100
So M.P. = 100 + 20% × 100 = 100 + 20 = 120
The shopkeeper earns a profit of 12% on the cost price.
So The selling price = C.P. + 12% of C.P.
⇒ S.P. = 100 + 12% × 100 = 100 + 12 = 112
Discount = M.P. − S.P.
Discount = 120 − 112 = 8
Discount % = (Discount/M.P.) × 100
⇒ Discount % = (8/120) × 100
⇒ Discount % = 800/120 = 6.666%