If a shopkeeper offers a 10% discount, he makes a 10% profit. Under the same conditions, if he offers a 25% discount, then how much of the profit or loss percentage will he get?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 8.33% loss.
Let's assume the Marked price = Rs 100
So, The selling price = 100 × (100 - Discount %)/100
= 100 × (100 - 10)/100 = 90
Cost Price = Selling Price × 100/(100 + profit %)
= 90 × 100/110 = 81.81
After 25% discount, the SP =
selling price = Marked price × (100 - Discount %)/100
= 100 × (100 - 25)/100 = 75
Loss % = (Cost price - Selling price)/Cost price × 100
(75 - 81.81)/81.81 × 100 = 8.32% loss