Multiple choice

A dealer buys an article at a discount of 20% on its list price and marks it at 25% above the list price. If he allows a 20% discount on the new list price, then his profit percent is:

  1. 24

  2. 25

  3. 20

  4. 27
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let list price = 100. Dealer buys at 80. Marks at 125. Sells at 125 * 0.8 = 100. Profit = 100 - 80 = 20. Profit % = (20/80) * 100 = 25%.

AI explanation

Assume the list price is Rs. 100, meaning the dealer buys it for Rs. 80 after a 20% discount. The dealer marks it at Rs. 125, and after allowing a 20% discount on this marked price, the selling price is Rs. 100. Using the profit percentage formula, Profit % = ((100 - 80) / 80) * 100, which equals 25%. The dealer's profit percent is 25.

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