Multiple choice

The marked price of a watch is Rs. 400. After allowing a discount of 25% on the marked price, there was a loss of Rs. 20. Determine the loss per cent

  1. 6.25%

  2. 8.25%

  3. 6.75%

  4. 4.50%

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

Selling price after 25% discount on Rs. 400 = 400 × (1 - 0.25) = Rs. 300. Since loss is Rs. 20, cost price = 300 + 20 = Rs. 320. Loss percentage = (20/320) × 100 = 6.25%.