Question

Mithul allowed a discount of 25% on marked price of Rs. 16,000 on an article and incurred a loss of 20%. If he wants to earn Rs. 600, what discount should he allow on the marked price?

• A. 10%
• B. 7.5%
• C. 3.5%
• D. 5%
• E. 2.5%

Answer 1

The correct option is E 2.5%

Selling price of the article = 16000 × 75% = Rs. 12000

Cost price of the article = (12000/80) × 100 = Rs. 15000

If he wants to earn Rs. 600, then discount = 16000 – 15600 = Rs. 400

Required discount percentage = (400/16000) × 100 = 2.5%

Hence, option E is the correct.