If a discount of 10% is allowed on the marked price of an article, a shopkeeper gets a profit of 25%. If he offers a discount of 25% on the marked price of the same article, then his percentage profit/loss will be:
Answer & explanation
Correct answer: option 3
Discount1 = 10%
Discount 2 = 25%
Let MP = 100.
SP of the article = 100 × 90% = 90
CP of the article = 90 × \(\frac{4}{5}\) = 72
New SP of the article = 100 × \(\frac{3}{4}\) = 75
Profit percentage = \(\frac{(75 – 72) × 100}{72}\) = $4\frac{1}{6}\%$