A shopkeeper earns a profit of 16% if he allows a discount of 20% on the marked price of an article. What will be the profit percent earned by the shopkeeper if he sold the article at its marked price ?
Answer & explanation
Correct answer: option 1
CP MP
100 - D% 100 + P%
100 - 20% 100 + 16%
80 116
If he allows no discount on the MP then the profit = 116 - 80 = 36
Profit% = 36 × \(\frac{100}{80}\) = 45%