A shopkeeper earns a profit of 16% if he allows a discount of 20% on the marked price of an article. What will be the profit percent earned by the shopkeeper if he sold the article at its marked price?

A shopkeeper earns a profit of 16% if he allows a discount of 20% on the marked price of an article.

Let's assume the cost price of the article is '100y'.

Selling price of the article = 100y of (100+16)%

= 100y of 116%

= $$100y\times\frac{116}{100}$$

= 116y

MRP of the article of (100-20)% = 116y

MRP of the article of 80% = 116y

MRP of the article = $$\frac{116y}{80}\times100$$ = 145y

profit percent earned by the shopkeeper if he sold the article at its marked price = $$\frac{145y-100y}{100y}\times100$$

= $$\frac{45y}{100y}\times100$$

= 45%