Multiple choice

If the marked price of an article is 40% more than the cost price, what percentage of discount can be given so that the vendor makes a profit of 20%?

  1. 20%

  2. 14.28%

  3. 16.66%

  4. 25%

  5. 10%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100. Then MP = 140. To get a 20% profit, SP must be 120. The discount is MP - SP = 140 - 120 = 20. Discount percentage = (20/140) * 100 = 100/7 = 14.28%.

AI explanation

Assume the cost price is Rs. 100, making the marked price Rs. 140 since it is 40% more than the cost. To achieve a 20% profit, the selling price must be Rs. 120. The discount amount is 140 - 120 = Rs. 20, so the discount percentage is (20 / 140) * 100, which equals 14.28%.

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