Multiple choice

The marked price of an article is 20% more than the cost price. If the article is sold at a discount of 15% on its marked price, then the gain is

  1. 5%

  2. 4.5%

  3. 2.5%

  4. 2%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = 100. MP = 120. Discount = 15% of 120 = 18. SP = 120 - 18 = 102. Gain = 102 - 100 = 2%.

AI explanation

Assume the cost price is Rs. 100, making the marked price 20% higher at Rs. 120. A 15% discount on the marked price equals Rs. 18, so the selling price is 120 minus 18, which is Rs. 102. Using the profit percentage formula, (Profit / Cost Price) multiplied by 100 gives (2 / 100) multiplied by 100, resulting in a 2% gain.

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