The marked price of an article is 60 percent more than its cost price. If 20 percent discount is given. then what will be the profit percentage?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 28 percent.
Let the cost price (CP) = Rs. x
The marked price (MP) is 60% more than the cost price.
Therefore,
⇒ MP = x + 0.60x = 1.60x
A 20% discount is given on the marked price,
so
the selling price (SP) = MP − 20% × MP
⇒ 1.60x − 0.20 × 1.60x = 1.60x × (1 − 0.20) = 1.60x × 0.80 = 1.28x
Profit = SP − CP = 1.28x − x = 0.28x
Profit Percentage = Profit/CP × 100 = 0.28x /x × 100 = 28%