The marked price of an article is 25% more than its cost price. If 10% discount is given on the marked price, then what is the profit percentage?
Answer & explanation
Correct answer: option 4
Let the cost price of the article = 100
Markup = 25%
Then the marked price = 125
Discount offered = 10%
Then the selling price of the article = 90% of 125 = 112.5
Profit% = (112.5 - 100) × \(\frac{100}{100}\) = 12.5%