Multiple choice

If a discount of 4% is given on a product; then there is a profit of 20%. Find the percentage profit on the original selling price?

  1. 33.33 %

  2. 32 %

  3. 25%

  4. 27.5 %

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

Let CP = 100. After 20% profit, SP = 120. This 120 is after 4% discount on marked price, so 0.96 × MP = 120, giving MP = 125. Original profit on MP = (125-100)/100 = 25%. The question asks for percentage profit on the original selling price (marked price), which is 25%.

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