Correct Answer - Option 4 : 20%
Given:
When table is sold at 20% discount, seller earns profit of 60%.
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 table be Rs. x.
⇒ Discount % = 20
⇒ {(x – S.P.)/x} × 100 = 20
⇒ S.P. = 4x/5
Profit % = 60
⇒ (4x/5 – C.P.)/C.P. × 100 = 60
⇒ 4x/5 = 8C.P./5
⇒ C.P. = x/2
If discount % = 40
⇒ (x – S.P.)/x × 100 = 40
⇒ S.P. = 3x/5
New gain % = (3x/5 – x/2)/(x/2) × 100 = 20%
∴ New gain % is equal to 20%.