Question

A profit of $20\%$ is made on the goods when a discount of $10\%$ is given on the list price. If a discount of $20\%$ is allowed on the list price, the profit to be made will be

• A. $6\%$
• B. $6\frac{2}{3}\%$
• C. $3\frac{1}{3}\%$
• D. $4\frac{2}{3}\%$

Answer 1

The correct option is B $6\frac{2}{3}\%$

Let C.P. be Rs 100
$S.P.=Rs120$
90% of L.P $=Rs120$
$\therefore L.P.=\frac{400}{3}$
New S.P. $=$ 80% of Rs $\frac{400}{3}=$ Rs $\frac{320}{3}$
Gain $=\frac{320}{3}-100=6\frac{2}{3}$%