Having initially established the marked price of a particular commodity at a 20% premium over its cost price, a retail vendor subsequently extended an unspecified discount. If, following this concession, the transaction ultimately yielded a profit of 8% on the cost price, what was the exact percentage of the discount given?
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Correct answer: D
Explanation
The correct answer is option 4 i.e. 10%.
Let CP = 100
MP = 120
Profit 8% ⇒ SP = 108
Discount = 120 – 108 = 12
Discount percentage = (12/120) × 100 = 10%