A trader gains 25% by selling an article with 20% discount on its marked price. If the cost price of the article increases by 30%, then how much discount (in %) should he offer on the same marked price to gain 15% of the profit?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 4.32%
Let the CP of an article = 100x
SP of an article to get a gain of 25% = 125x
Discount % = 20%
MP = 125x × 100/80 = 156.25x
Now the CP is increased by 30%
New CP = 100x × 130% = 130x
To get a gain of 15%
New SP of an article = 130x × 115% = 149.5x
Discount offered = 156.25x - 149.5 = 6.75x
Discount% = 6.75x/156.25 × 100 = 4.32%