The marked price of an article is 25% more than its cost price. If a scheme discount of 40% is given, then the loss percentage is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 25%.
Let the cost price(C.P.) of the article be Rs. 100
The marked price(MP) is 25% more than the cost price
⇒ MP = CP + 25% of CP
⇒ MP = 100 + 25/100 × 100
⇒ MP = 100 + 25
⇒ MP = Rs.125
A discount of 40% is given on the marked price
⇒ SP = MP - 40% of MP
⇒ SP = 125 - 40/100 × 125
⇒ SP = 125 - 50
⇒ SP = Rs. 75
Now,
⇒ Loss = CP - SP
⇒ 100 - 75 = Rs. 25
⇒ Loss% = Loss/CP × 100
⇒ 25/100 × 100 = 25%