Question

A person sells a radio at a price of $1000$ at $20\%$ discount to another person. The second person increases its price by $400$ and sells it at $25\%$ discount. What is the percent profit made by the second person?

• A. $12.5\%$
• B. $15\%$
• C. $30\%$
• D. $22.5\%$

Answer 1

The correct option is A $12.5\%$

MP of radio sold by first person $=1000$
Discount $=20\%$
SP of radio sold by first person $\frac{100-20}{100}\times MP=\frac{80}{100}\times 1000=800$
CP of radio purchased by second person $=800$
MP of radio decided by second person $=(800+400)=1200$
Discount $=25\%$
SP by second person $\frac{100-25}{100}\times 1200=\frac{75}{100}\times 1200=900$
Amount gained by second person $=900-800=100$
$\therefore$ Profit percent $=\frac{100}{800}\times 100=12.5\%$