The list price of a motorcycle is 20% more than its cost price. It is sold at a discount of 30%. Find the dealer's loss percentage.
Answer & explanation
Correct answer: option 4
Let the cost price = 100
Markup = 20%
then the marked price of the article = 120
discount % = 30%
Then the selling price = 70% of the marked price
SP = 70% of 120 = 84
Then the loss% = ( 100 - 84) × \(\frac{100}{100}\) = 16%