Ravi bought an article at 20% less than its marked price and sold it at 8% more than the marked price. Find his profit percentage.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 35%
Take the marked price as Rs 100; then find the cost and the selling price from it.
CP \(=100-20=80\); SP \(=100+8=108\)
Profit \(=108-80=28\)
Profit percentage \(\displaystyle =\frac{28}{80}\times100=35\%\)
His profit is 35%.
Why the other options are incorrect
Option (1) 12% — Incorrect. This takes 8 away from 20; buying 20% below the MP and selling 8% above it both add to the gain.
Option (2) 28% — Incorrect. This adds 20% and 8%; both are percentages of the MP, but the profit must be worked out on the cost price.
Option (4) \(25\frac{25}{27}\%\) — Incorrect. This divides the profit by the selling price; profit % is on the cost price.