Question
A seller purchases an item for Rs. 240 and sells it
with a 20% discount, earning a profit of 20%. If the seller increases the discount to 25%, what would be the new profit percentage?Solution
Selling price of item = 1.2 × 240 = Rs. 288 So, marked price of item = 288/0.8 = Rs. 360 Therefore, selling price on 25% discount = 360 × 0.75 = Rs. 270 Therefore, required profit percentage = {(270 – 240)/240} × 100 = 12.5%
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