A new mobile is introduced into the market and is marked at 25% above its original cost price. What discount should be given on the marked price to gain a profit of 20%?
Answer & explanation
Correct answer: option 3
Let the cost price of the article = 100
then the marked price of the article at 25% above = 125
Profit = 20%
Then the selling price of the article = 120% of CP = 120% of 100 = 120
Discount % = ( 125 - 120) × \(\frac{100}{125}\) = 4%