Multiple choice general knowledge math & puzzles

The price of a trouser is marked 50% more than its cost price and a discount of 25% is offered on the marked price of the trouser by the shopkeeper. Find the percentage of profit/loss.

  1. 12.5% loss

  2. 10% profit

  3. 12.5% profit

  4. 10% loss

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

If cost price is CP, the marked price is 1.5 x CP. After a 25% discount, selling price = 1.5 x CP x 0.75 = 1.125 x CP, which is a 12.5% profit. The key is to apply the discount to the marked price, not the cost price.