When an article is sold at its marked price, it gives a profit of 25%. If a discount of 9.6% is allowed on the marked price, then the profit percentage will be?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 13.
Let the cost price of the article be 100.
Marked price = 100 × 1.25 = 125
Selling price when a discount of 9.6% is applied.
⇒ 125 × (100 - 9.6)/100
⇒ 125 × 90.4/100
⇒ 5 × 90.4/4
⇒ 5 × 22.6
⇒ 113
Profit of 13%.