Multiple choice

If a discount of 10\% is allowed on the marked price of an article, a shopkeeper gets a profit of 25\%. If he offers a discount of 25\% on the marked price of the same article, then his percentage profit/loss will be?

  1. 4% profit

  2. $\left(\frac{25}{6}\right)\% loss$
  3. $\left(\frac{25}{6}\right)\% profit$
  4. 4% loss

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

Let MP = 100, CP = x. After 10% discount: SP = 90, profit = 90-x = 0.25x, so x = 72. After 25% discount: SP = 75, profit = 75-72 = 3. Profit% = 3/72 = 1/24 = 4.167%, which equals 25/6%. Option A and D are common errors in percentage calculation. Option B incorrectly predicts a loss.