Market price and cost price of an article are in ratio 5 : 4.If the profit earned by selling the article is 12.5%, then what is the discount percentage?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 10%
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Understanding |
Application |
Calculation |
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Profit earned by selling the article is 12.5% |
So, SP = CP (1 + 0.125) ⇒ SP = 1.125CP |
⇒ CP/SP = 8/9 Or CP : SP = 8 : 9 |
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Marked price and cost price of an article are in ratio 5 : 4
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So, MP : CP = 5 : 4
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Or MP : CP = 10 : 8 |
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Now we have, CP : SP = 8 : 9 And MP : CP = 10 : 8 |
Suppose, CP = 8x SP = 9x MP = 10x |
Hence, Discount = [(10x – 9x)/10x] × 100 = 10% |