Question

Mohan offers to sell his articles at a discount of 20%, but he marks his articles by increasing the price of each by 35%. What percentage would his gain be?

1. 10%
2. 9%
3. 8%
4. 7%

Answer 1

Correct Answer - Option 3 : 8%

Given:

Discount = 20%

MP is more than CP by 35%

Formula:

Profit = SP – CP

Profit % = (Profit/CP) × 100

Calculation:

Let CP of the articles be Rs. 100

MP of the articles = 100 × (135/100) = Rs. 135

Now,

SP of the articles = 135 × (80/100) = Rs. 108

Profit = Rs. 108 - Rs. 100 = Rs. 8

∴ Profit percentage = (8/100) × 100 = 8%