If the price item is increased by 70% and then allows a scheme discount of 5% and 20% on this marked price. If price is paid in cash and additional discount of 20% is allowed then what is his gain percentage?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e 3.36%.
Price increase = 70% of ( P) = ( 0.70 × P ).
Marked price after increase = ( P + 0.70P = 1.70P ).
Discount = 5% of ( 1.70P ) = ( 0.05 × 1.70P = 0.085P).
Price after 5% discount = ( 1.70P - 0.085P = 1.615P ).
Discount = 20% of ( 1.615P ) = ( 0.20 × 1.615P = 0.323P ).
Price after 20% discount = ( 1.615P - 0.323P = 1.292P ).
Discount = 20% of ( 1.292P ) = ( 0.20 × 1.292P = 0.2584P ).
Final price paid = ( 1.292P - 0.2584P = 1.0336P ).
The final price paid is ( 1.0336P ), and the original price was( P).
Gain = Final price paid - Original price = ( 1.0336P - P = 0.0336P ).
Gain percentage = (0.0336P) / (P) × 100 = 3.36%