Question

The marked price of an article is 28% higher that its cost price. Find the profit or loss percentage if the shopkeeper gives 25% discount.
1. Loss: 5%
2. Profit: 5%
3. Loss: 4%
4. Profit: 4%

Answer 1

Correct Answer - Option 3 : Loss: 4%

Given:

Marked price = 28% higher than cost price

Discount given = 25%

Concept used:

Marked price, MP × (100 - discount, D%) = Selling price, SP

Calculation:

MP = CP + 28%CP = 128% CP

MP × (100 - 25)% = SP

128% CP × 75% = SP

CP/SP = 100/96

That is, if CP = Rs 100 then, SP = Rs 96

Loss percentage = (CP - SP)/CP × 100 

Loss percentage = (100 -  96)/100 × 100 = 4%.

∴ The loss percentage is 4%