The marked price of an article is $\frac{7}{5}$ of the cost price. If discount of 20% is given on the marked price, then what is the profit percentage?
Answer & explanation
Correct answer: option 2
The marked price of an article = $\frac{7}{5}$ of the cost price
\(\frac{MP}{CP}\) = \(\frac{7}{5}\)
Discount = 20%
Discount of 20% means selling price is 80% of the Marked price
Selling price = 80% of 7 = 5.6
Profit = 5.6 - 5 = 0.6
Profit% = 0.6 × \(\frac{100}{5}\) = 12%