Correct Answer - Option 3 : Loss 4%
Given:
Discount = 20%
Formula used:
SP = MP × (100 - D%)/100
Loss% = [(Cost Price - Selling Price)/Cost Price] × 100
Calculation:
Let the cost price of the article be 100x
So, marked price of article = 120x
after 20% discount on the marked price
Selling Price = 120x(100 - 20)/100
⇒ 120x × 80/100
⇒ 96x
Loss% = [(Cost Price - Selling Price)/Cost Price] × 100
⇒ [(100x - 96x)/100x] × 100
⇒ 4
∴ Shopkeeper has loss of 4%.