The list price of a motorcycle is 20% more than its cost price. It is sold at a discount of 30%. Find the dealers' loss percentage.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 16%.
LP = CP × (100 + Mark up)%
SP = LP × (100 - Discount)%
Let the CP of the motorcycle be = 100a
LP = 100a × (100% + 20%)
LP = 100a × 120/100 = 120a ----(1)
Now,
SP = 120a × (100% - 30%)
SP = 120a × 70/100 = 84a
Loss = (CP - SP)
Loss = (100a - 84a)= 16%
Loss % = 16a/100a × 100 = 16%