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Question : The marked price of a pen is 25% more than its cost price. The pen is sold for INR 220 after a discount of INR 30. What is the profit percentage?

Option 1: 10%

Option 2: 15%

Option 3: 20%

Option 4: 17.5%


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 27th Jan, 2024

Correct Answer: 10%


Solution : Given: Selling price = INR 220
Profit = INR 30
Let the cost price be $x$.
Then, Marked price = $1.25x$
We know that,
Marked price = selling price + discount
⇒ $\frac{125x}{100}=220+30$
⇒ $x = 200$
Cost price = INR 200
Profit = selling price – cost price = 220 – 200 = 20
Profit percentage = $\frac{\text{Profit}}{\text{Cost price}}\times 100$
= $\frac{20}{200}\times 100$
= 10%
Hence, the correct answer is 10%.

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