Regularly, a shop offers a 12% discount on the marked price. During festive seasons, it offers a successive discount of 10% and the owner still earns a profit of 5%. What would have been the profit in percentage if only 4% successive discount is offered with regular discount?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 12%.
Let's assume the Marked price = 100
Successive discount = x + y - xy/100
After 12% and 10% successive discount,
= 12 + 10 - (12 × 10)/100 = 20.8%
Selling price = Marked price × (100 - Discount %)/100
The Selling price = 100 × (100 - 20.8)/100 = Rs 79.2
After 5% profit, the cost price = Selling Price × 100/(100 + profit %)
= 79.2 × 100/105 = Rs 75.42
If only 4% successive discount is offered with regular discount,
New successive discount = 12 + 4 - (12 × 4)/100 = 15.52%
New Selling Price = 100 × (100 - 15.52)/100 = Rs 84.48
Profit percentage = (Selling price - Cost price)/Cost price × 100
So, the profit % = (84.48 - 75.42)/75.42 × 100 = 12.01%