Marked price and cost price of an article are in ratio 5 : 4. If the profit earned by selling the article is 12.5%, then what is the discount percentage?
Answer & explanation
Correct answer: option 4
Marked price and cost price of an article are in ratio 5 : 4
Profit is 12.5%
Cost price = 4x
Selling price = 112.5% of 4 = 4.5x
Marked price = 5x
Discount = 5x - 4.5x = 0.5x
Discount% = 0.5x × \(\frac{100}{5x}\) = 10%