Multiple choice

By selling an umbrella for Rs.300 a shopkeeper gains 20%. During a clearance sale the shopkeeper allows a discount of 10% on the marked price. Find his gain percent during the sale season.

  1. 10%

  2. 8%

  3. 12%

  4. 9%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If selling at 300 gives 20% profit, the cost price is 300/1.2 = 250. The marked price is not explicitly given, but assuming the 300 was the original selling price (and assuming no discount initially), the marked price is 300. A 10% discount on 300 makes the new selling price 270. The gain is 270 - 250 = 20, and the gain percent is (20/250)*100 = 8%.

AI explanation

By selling the umbrella for Rs.300 at a 20% gain, the cost price is calculated as 300 divided by 1.2, which equals Rs.250. The marked price is found by dividing the original selling price by 0.9, since the original sale effectively had no discount, making the marked price Rs.300. During the clearance sale, a 10% discount on Rs.300 gives a new selling price of Rs.270. The gain percent formula yields a profit of (20 divided by 250) multiplied by 100, resulting in an 8% gain.

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