Question
The price of an article marked at 25% above cost price
is sold at a profit of 20%. If it were to be sold at a discount of 20%, ind the percentage decrease in the selling price.Solution
Let the cost price of the article be x. Marked price = x + 0.25x = 1.25x Now, 0.20 = (SP – x)/x SP = 1.20x SP = 1.25x × 0.80 = 1x Change in SP = (1.20x – 1x) × 100 ÷ 1.20x = 16.66%
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