Question

If 10% discount is allowed on the marked price of an article, the profit of a dealer is 20%. If he allows a discount of 20%, his profit will be

• A. $4\frac{1}{3}\%$
• B. $5\%$
• C. $6\frac{2}{3}\%$
• D. $8\%$

Answer 1

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

Let the M.P. of the article = Rs.100

Discount = 10%

$\therefore$ S.P. = 90% of Rs.100 = Rs.90, Profit = 20%
$\therefore C.P.=Rs.\frac{90\times 100}{120}=Rs.75$
If the discount is 20% then S.P. = 80% of Rs.100 = Rs.80
$\therefore$ Required profit % $=\frac{(80\times 75)}{75}=100$ $=\frac{5}{75}\times 100=6\frac{2}{3}\%$