Marked price of an article is 60% more than its cost price. If the article is sold at a profit of 20%, then what will be the discount percentage?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 25%.
| Understanding/Application |
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Marked Price = 160% of Cost Price Profit = 20% C.P. × (100 + Profit%)/100 = S.P. M.P. × (100 - Disocunt%)/100 = S.P. Let the C.P. be 100 and the discount% be d. S.P. = 120 M.P. = 160 |
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ATQ - 160 × (100 - d)/100 = 120 100 - d = 300/4 d = 100 - 75 = 25 |