An article is marked at a price that is 20% more than its cost price. After allowing a certain discount on the marked price, the profit reduces to 10%. The discount percentage is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 8%.
Let cost price = ₹100
Marked price = 100 + 20% of 100 = ₹120
Profit after discount = 10% → Selling price = ₹110
Discount = 120 − 110 = ₹10
Discount % = (10 / 120) × 100 = 8 1/3%