Question

Chair when sold at 20% discount makes seller earns profit of 30%. If chair is sold at 10% discount, what will be the new profit percent?

1. 50%
2. 25.57%
3. 46.25%
4. 56.5%

Answer 1

Correct Answer - Option 3 : 46.25%

Given:

Chair when sold at 20% discount makes seller earns profit of 30%.

Concepts used:

M.P. = S.P. + Discount

Discount % = Discount/M.P. × 100

Gain % = Gain/C.P. × 100

Gain = S.P. – C.P.

Calculation:

Let M.P. of chair be Rs. x.

⇒ Discount % = 20

⇒ {(x – S.P.)/x} × 100 = 20

⇒ S.P. = 4x/5

Profit % = 30

⇒ (4x/5 – C.P.)/C.P. × 100 = 30

⇒ 4x/5 = 13C.P./10

⇒ C.P. = 8x/13

If discount % = 10

⇒ (x – S.P.)/x × 100 = 10

⇒ S.P. = 9x/10

New gain % = (9x/10 – 8x/13)/(8x/13) × 100 = 46.25%

∴ New gain % is equal to 46.25%.