Multiple choice

A shopkeeper marks up the price of his product by 20%. If he increases the discount from 5% to 10%, the profit would decrease by Rs 21. How much profit/ loss would he earn if he gives a discount of 20% on the marked price?

  1. 18 loss

  2. 18 profit

  3. 14 loss

  4. 14 profit

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = x. MP = 1.2x. At 5% discount: SP = 1.14x, profit = 0.14x. At 10% discount: SP = 1.08x, profit = 0.08x. Profit decrease = 0.06x = 21, so x = 350. At 20% discount: SP = 0.96x, loss = 0.04x = Rs 14 loss.

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