Correct Answer - Option 4 : 20%

**Given**

A shopkeeper fixes the marked price of a pair of shoes 45% above its cost price

**Formula used**

MP(1 - D/100) = SP

SP = Selling price

MP = Marked price

D = Discount

SP = CP + Profit%

**Calculation**

Let Cost pice be 100

⇒ MP = 145

⇒ Profit = 16

⇒ SP = 116

⇒ Discount = 145 - 116 = 29

⇒ Discount% = (29/145)× 100

⇒ 20%

**∴ Discount is 20%**