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Question 128

The marked price of a certain commodity is 30% higher than its cost price. A discount of 20% on the marked price makes the selling price Rs. 208. What is the net profit as a percent of cost price?

Solution

Let cost price of article be Rs. $$100x$$

=> Marked price = Rs. $$130x$$

After 20% discount, selling price = $$\frac{80}{100}\times130x=208$$

=> $$4\times26x=208$$

=> $$x=2$$ ---------(i)

Thus, cost price of article = Rs. 200

$$\therefore$$ Net profit as percent of cost price = $$\frac{(SP-CP)}{CP}\times100$$

= $$\frac{(208-200)}{200}\times100=4\%$$

=> Ans - (B)

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