Multiple choice

A trader allows a discount of 20% of his goods and still makes a profit of 25%. Find the profit percent made, if he sells his goods at 10% discount.

  1. $40.625\%$
  2. $40.825\%$
  3. $40.675\%$
  4. $40.620\%$
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A Correct answer
Explanation

Let MP = 100. SP1 = 80. Profit = 25%, so CP = 80/1.25 = 64. If discount is 10%, SP2 = 90. Profit = (90-64)/64 = 26/64 = 0.40625, which is 40.625%.

AI explanation

If the cost price is 100, a 25 percent profit with a 20 percent discount means the marked price is 125 divided by 0.80, which is 156.25. If he sells at a 10 percent discount instead, the new selling price is 156.25 times 0.90, which equals 140.625. Therefore, the new profit percent is 140.625 minus 100, which is 40.625 percent.

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