Sneha fixes the marked price of an item 40% above its cost price. What is the percentage of discount allowed to gain 12%?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 20%.
Let CP = 100
So, MP = 140
Also, SP = 112
Discount = 140 - 112 = 28
Discount percentage = (28/140) × 100 = 20%
Therefore, the discount rate allowed is 20%.