Question

An article is marked 35% above its cost. If a profit of 20% is earned by selling the article, then the discount per cent offered on the marked price of the article is:
1. \(11\frac{1}{9}\%\)
2. 15%
3. 12%
4. \(10\frac{1}{9}\%\)

Answer 1

Correct Answer - Option 1 : \(11\frac{1}{9}\%\)

Given:

Marked price = 35% above the cost price

Profit% = 20%

Formula used:

Discount% = (Discount/M.P) × 100%

Calculation:

Let the cost price be Rs. 100x

Marked price = Rs. 100x × (135/100)

⇒ Rs. 135x

Selling price = Rs. 100x × (120/100)

⇒ Rs. 120x

Discount = Rs. (135x – 120x)

⇒ Rs. 15x

Discount% = (15x/135x) × 100%

⇒ 100/9%

∴ The discount% offered on the marked price is 100/9%