A shopkeeper offers two successive discounts of 15% and 20% on an article and is still able to earn a 70% profit. If he offers a single discount of 30%, what will his profit percentage be?
Answer & explanation
Correct answer: option 2
Let the MRP = 100.
Selling price of the article = 100 of (100-15)% of (100-20)%
= 100 × \(\frac{85}{100}\) × \(\frac{80}{100}\)
= 68
He is still able to earn a 70% profit.
Cost price of the article = \(\frac{68}{17}\) × 100 = 40
If he offers a single discount of 30%, then selling price = 100 of (100-30)%
= 100 of 70%
= 70
New profit percentage = \(\frac{70 - 40}{40}\) × 100 = 75%