Multiple choice

Marked price of an article is 20% above the CP. He allows his customers a discount and makes a profit of 8%. Find the rate of discount.

  1. 10 %

  2. 12 %

  3. 20 %

  4. 18 %
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A Correct answer
Explanation

Let CP = 100. MP = 120. Profit = 8%, so SP = 108. Discount = MP - SP = 120 - 108 = 12. Discount percentage = (12/120) * 100 = 10%.

AI explanation

Let the cost price be 100, making the marked price 120 since it is marked 20% above the cost price. To make an 8% profit, the target selling price must be 108. The discount amount is 120 minus 108, which equals 12. The rate of discount is (12 / 120) * 100, resulting in a 10% discount.

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