Question

A shopkeeper earns a profit of 35% when he sells articles at a discount of 10%. What will be the profit percentage if he gives 20% discounts?
1. 20%
2. 17.5%
3. 25%
4. 15%

Answer 1

Correct Answer - Option 1 : 20%

Given:

Profit % = 35%

Discount % = 10%

Formula:

Profit = SP - CP

Profit % = (SP - CP)/CP × 100

Calculation:

Let cost price of an article be Rs.100

⇒ 35 = (SP - 100)/100 × 100

Selling price = Rs.135

Then,

⇒ 135 = marked price × (100 - 10)/100

⇒ Marked price = Rs.150

Selling price when discount is 20% = 150 × (100 - 20)/100 = Rs.120

∴ Profit % when discount is 20% = (120 - 100)/100 × 100 = 20%