When an article is sold at its marked price, it gives a profit of 25% If a discount of 9.6% is allowed on the marked price, then the profit percent will be:
- AOption (a)
16.6
- BOption (b)
13
- COption (c)
15.4
- DOption (d)
15
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Correct answer
13
Why this answer is correct
Shortcut Trick
Let Cost Price (CP) = 100.
Profit = 25% when sold at MP → Marked Price (MP) = 125.
New Selling Price (SP) after 9.6% discount = 125 × (100 − 9.6)% = 125 × 90.4%.
New SP = 1.25 × 90.4 = 113.
Profit % = New SP − CP = 113 − 100 = 13%.
∴ The correct answer is 13%.
Alternate Method
Given:
Profit at Marked Price = 25%
Discount offered on Marked Price = 9.6%
Formula Used:
Profit % = [(SP − CP) ÷ CP] × 100
SP = MP − Discount
Calculations:
⇒ Let the Cost Price (CP) of the article be 100.
⇒ Since selling at MP gives 25% profit, MP = 100 + 25% of 100 = 125.
⇒ Discount amount = 9.6% of MP = (9.6 ÷ 100) × 125.
⇒ Discount amount = (9.6 × 1.25) = 12.
⇒ Selling Price (SP) = MP − Discount = 125 − 12 = 113.
⇒ Profit = SP − CP = 113 − 100 = 13.
⇒ Profit % = (13 ÷ 100) × 100 = 13%.
∴ The correct answer is 13%.
Additional Information
Relationship between CP and MP
The ratio of Cost Price to Marked Price is given by CP ÷ MP = (100 − Discount%) ÷ (100 + Profit%).
Successive Discounts
If two successive discounts of a% and b% are allowed, the equivalent single discount is (a + b − ab/100)%.
Effective Profit Percentage
Effective Profit % = Mark up % − Discount % − (Mark up % × Discount % ÷ 100).


