DIRECTIONS for question 11 to 16: Select the correct alternative from the given choices.The amount of discount offered on an article was three times the profit made on selling it. If the article was marked up by 100% before offering the discount, then what was the percentage of profit made on selling it?10%20%25%75%
Question
DIRECTIONS for question 11 to 16: Select the correct alternative from the given choices.The amount of discount offered on an article was three times the profit made on selling it. If the article was marked up by 100% before offering the discount, then what was the percentage of profit made on selling it?10%20%25%75%
Solution
The problem states that the discount offered on an article was three times the profit made on selling it. It also states that the article was marked up by 100% before offering the discount. We are asked to find the percentage of profit made on selling it.
Let's denote the cost price of the article as C.
Since the article was marked up by 100%, the marked price (M) would be 2C.
The discount offered (D) is three times the profit (P), so D = 3P.
The selling price (S) of the article would be the marked price minus the discount, so S = M - D = 2C - 3P.
But the selling price is also the cost price plus the profit, so S = C + P.
Setting these two equations for S equal to each other gives us C + P = 2C - 3P.
Solving this equation for P gives us P = C/4.
The percentage of profit made on selling the article is therefore (P/C) * 100% = (C/4C) * 100% = 25%.
So, the correct answer is 25%.
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