Multiple choice

If 10% discount is allowed on the marked price of an article, the profit of a dealer is 20%. If he allows a discount of 20%, his profit will be

  1. $\displaystyle 4\frac{1}{3}\%$
  2. $5\%$
  3. $\displaystyle 6\frac{2}{3}\%$
  4. $8\%$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let MP = 100. 10% discount means SP = 90. Profit 20% means CP = 90/1.2 = 75. If 20% discount, SP = 80. Profit = 80 - 75 = 5. Profit % = (5/75) * 100 = 6.66%.

AI explanation

Let the cost price be Rs.100, which means at a 10% discount the selling price gives a 20% profit, so the selling price is Rs.120. This means the marked price is 120 divided by 0.9, which equals Rs.133.33. If the dealer allows a 20% discount on this marked price, the new selling price is 0.8 multiplied by 133.33, which equals Rs.106.66. The profit percentage formula gives a profit of 6.66 divided by 100 multiplied by 100, which is 6 2/3%.

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