Multiple choice

A shopkeeper is able to make a profit of 25% after allowing a discount of 25%. What profit percentage will he be able to make by not allowing any discount?

  1. 33.33%

  2. 66.66%

  3. 45%

  4. 50%

  5. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let MP = 100. After 25% discount, SP = 75. Profit = 25% of CP, so 1.25 * CP = 75, CP = 60. If no discount, SP = MP = 100. Profit = 100 - 60 = 40. Profit % = (40/60) * 100 = 66.66%.

AI explanation

Let the cost price be Rs. 100, meaning the selling price with a 25% profit is Rs. 125. Since a 25% discount is allowed, the marked price is 125 / (1 - 0.25), which equals 125 / 0.75 or Rs. 500 / 3. If no discount is allowed, the selling price becomes the marked price of 500 / 3, so the new profit is (500 / 3) - 100, or 200 / 3. Applying the profit percentage formula, ((200 / 3) / 100) x 100 equals 66.66%. The result is 66.66%.