Explanation:
The marked price of an article is 25% above the SP and the CP is 20% below the selling price. What is the rate of discount and the profit percentage?
Let C, M & S denote cost-price, marked-price & sell-price respectively of the article.
Hence from above data we get following relations,
M = (1 + 25/100)*S = 1.25*S ….. (1a)
C = (1 - 20/100)*S = 0.80*S ….. (1b)
From (1a) we get,
S = (100/125)*M = (4/5)*M
or S = (1 - 1/5)*M = (1 - 20/100)*M ….. (2a)
From (1b) we get,
S = (100/80)*C = (5/4)*M
or S = (1 + 1/4)*C = (1 + 25/100)*C ….. (2b)
Therefore
It is evident from (2a) that
the discount percentage = 20% [Ans]
It is evident from (2b) that
the profit percentage = 25% [Ans]