Question:
An item is marked for sale at ₹ 7,200. A dealer allows a discount of 10% and yet makes a profit of 8%. What would have been his gain percentage, if no discount was allowed?
An item is marked for sale at ₹ 7,200. A dealer allows a discount of 10% and yet makes a profit of 8%. What would have been his gain percentage, if no discount was allowed?
Updated On: Sep 16, 2026
- 24%
- 16%
- 18%
- 20%
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The Correct Option is D
Solution and Explanation
Concept:
Step 1: Find the selling price after the discount
Marked price = ₹7,200, discount = 10%
SP = 7200 x (90/100) = ₹6,480
Step 2: Find the cost price using the profit% on this SP
SP = CP x 1.08
CP = 6480/1.08 = ₹6,000
Step 3: Find the gain% if no discount is given
Without discount, SP = Marked price = ₹7,200
Gain = 7200 - 6000 = ₹1,200
Gain% = (1200/6000) x 100 = 20%
Final Answer: 20%
- Marked price is the price before discount; Selling price = Marked price - Discount.
- Profit % is always calculated on the Cost Price, never on the marked price.
- Find the cost price from the discounted selling price and profit%, then find the gain% if the full marked price were charged (no discount).
Step 1: Find the selling price after the discount
Marked price = ₹7,200, discount = 10%
SP = 7200 x (90/100) = ₹6,480
Step 2: Find the cost price using the profit% on this SP
SP = CP x 1.08
CP = 6480/1.08 = ₹6,000
Step 3: Find the gain% if no discount is given
Without discount, SP = Marked price = ₹7,200
Gain = 7200 - 6000 = ₹1,200
Gain% = (1200/6000) x 100 = 20%
Final Answer: 20%
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