Question

A laptop is marked at a price 20% above its cost price. At what discount it should be sold to make a 5% profit?

1. 10%
2. 12.5%
3. 15%
4. 16%

Answer 1

Correct Answer - Option 2 : 12.5%

Given Data:

laptop is marked at a price 20% above its cost price

Calculation:

cost price of product be Rs. 100

Marked price = (100 + 20)% of 100 = 120

⇒ profit = 5%

⇒ Selling price = (100 + 5)% of 100 = 105

⇒ discount = Marked price - Selling price = 120 - 105 = 15

⇒ Discount % = (15/120) × 100 = 12.5%

∴ 12.5% is discount  should be sold so as to make 5% profit.