If a merchant offers a discount of 30% on the list price, then he makes a loss of 16%. What % profit or % loss will he make if he sells at a discount of 20% of the list price?
- A14 percent profit
- B4 percent loss
- C26 percent profit
- D8 percent profit
Solution & Step-by-step Explanation
Let the List Price (Marked Price) be LP=100.
Case 1:
Discount = 30%, so Selling Price (SP
1
) = 100−30=70.
Loss = 16%.
We know that:
CP=
1−
100
Loss%
SP
1
=
1−0.16
70
=
0.84
70
=
84
7000
=
3
250
Case 2:
Discount = 20% on list price, so new Selling Price (SP
2
) = 100−20=80.
Profit or Loss calculation:
Profit/Loss=SP
2
−CP=80−
3
250
=
3
240−250
=−
3
10
Since it is negative, it is a loss.
Loss%=(
CP
Loss
)×100=(
3
250
3
10
)×100=
250
10
×100=4%
Thus, there is a 4% loss.
Case 1:
Discount = 30%, so Selling Price (SP
1
) = 100−30=70.
Loss = 16%.
We know that:
CP=
1−
100
Loss%
SP
1
=
1−0.16
70
=
0.84
70
=
84
7000
=
3
250
Case 2:
Discount = 20% on list price, so new Selling Price (SP
2
) = 100−20=80.
Profit or Loss calculation:
Profit/Loss=SP
2
−CP=80−
3
250
=
3
240−250
=−
3
10
Since it is negative, it is a loss.
Loss%=(
CP
Loss
)×100=(
3
250
3
10
)×100=
250
10
×100=4%
Thus, there is a 4% loss.