Correct Answer - Option 4 : 33%
Given:
The article is purchased after 12.5% discount then its price is marked up by 40% and finally 5% discount is offered.
Concept:
Discount is given on marked price and the price decided after discount will be the selling price.
Formula used:
Discount = [(100 – D%)/100] × M.P.
Calculation: Let the initially marked price be Rs.100.
C.P for the shopkeeper = [(100 – 12.5)/100] × 100
⇒ C.P = Rs. 87.5
M.P of the shopkeeper = [87.5 × (100 + 40)]/100
⇒ M.P = Rs. 122.5
S.P of the shopkeeper = [(100 – 5)/100] × 122.5
⇒ S.P = Rs. 116.375
Profit% = (116.375 – 87.5)/87.5 × 100
⇒ Profit% = 33%
∴ The profit percentage is 33%.