What is the profit percentage in selling an article at a discount of 30% which was earlier being sold at a 45% profit?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 1.5%.
Initial Selling Price (S.P.) at 45% profit
Initial S.P. = C.P. + 45% of C.P.
⇒ 100 + 45 = Rs. 145
Discounted Selling Price after 30% discount = Initial S.P. - 30% of Initial S.P.
Discounted S.P. = 145 - 30/100 × 145
⇒ 145 - 43.5 = Rs. 101.5
Profit = Discounted S.P. - C.P.
Profit = 101.5 - 100 = Rs.1.5
Now,
Profit% = Profit/C.P. × 100
⇒ 1.5/100 × 100 = 1.5%