Question : The marked price of an article is 40% more than its cost price. If a 25% discount is given, what will be the profit percentage?
Option 1: 12.5%
Option 2: 10%
Option 3: 15%
Option 4: 5%
Correct Answer: 5%
Solution :
Given: The marked price is 40% more than the cost price and the discount is 25%.
Let the cost price (CP) be $100x$.
Then, the marked price(MP) is $140x$.
Selling price after giving a discount of 25% = $\text{MP}\times \frac{100-\text{Discount%}}{100}$
= $140x\times \frac{100-25}{100}$
= $140x\times \frac{75}{100}$
= $105x$
So, the profit percentage $=\frac{\text{SP-CP}}{\text{CP}}\times 100$%
= $\frac{105x-100x}{100x}\times 100 = 5$%
Hence, the correct answer is 5%.
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