Question

The marked price of a bicycle is Rs. 1500, which is 25 percent above the cost price. If it is sold at a discount of 10 percent, find the profit percent?
1. 20 percent
2. 15 percent
3. 30 percent
4. 12.5 percent

Answer 1

Correct Answer - Option 4 : 12.5 percent

Given:

Marked price = Rs. 1500

Mark up percent = 25%

Discount percentage = 10%

Formula used:

Profit percentage = {(SP - CP)/CP} × 100

where,

CP = Cost price

SP = Selling price

Calculation:

Let the CP be 100x.

MP = 100x + 100x × 25%

⇒ 1500 = 125x

⇒ x = 12

CP = 100x = Rs. 1200

SP = 1500 - 1500 × 10%

⇒ SP = 1500 - 150

⇒ SP = Rs. 1350

Profit percentage = {(SP - CP)/CP} × 100

⇒ {(1350 - 1200)/1200} × 100

⇒ {(150)/1200} × 100

⇒ 12.5%

∴ The profit percentage is 12.5%.