Multiple choice

By selling an article at 80% of it marked price, a trader makes a loss of 10%. What will be the profit percentage if he sells it at 95% of its marked price?

  1. 5.9

  2. 12.5

  3. 6.875

  4. 5
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Selling at 80% of MP gives 10% loss, so 0.8MP = 0.9CP, meaning CP = 0.8MP/0.9. At 95% of MP, SP = 0.95MP. Profit = (0.95MP - CP)/CP × 100. Substituting CP gives (0.95 - 0.8/0.9)/(0.8/0.9) × 100 = 6.875%.

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