The marked price of a chair is 150% of its cost price. A discount of 30% is given while selling the chair. What is the profit percentage?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 5%
The discount is taken on the marked price, while the profit is counted on the cost price.
Assuming the cost price to be 100:
Marked price \(=150\% \text{ of } 100=150\)
Selling price after a 30% discount \(=150\times0.70=105\)
Profit \(=105-100=5\) on a cost of 100, that is, 5%