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A merchant marks the price of his article 20 percent above the cost price. He gives some discount on it and earns a profit of 10 percent. What is the
Question

A merchant marks the price of his article 20 percent above the cost price. He gives some discount on it and earns a profit of 10 percent. What is the discount percentage?

A.

16.67 percent

B.

9.09 percent

C.

11.11 percent

D.

8.33 percent

Correct option is D

Given:
Marked Price (MP) is 20% above the Cost Price (CP)
Profit earned is 10% of CP
Formula Used:
Discount percentage is given by:

Discount Percentage=MPSPMP×100\text{Discount Percentage} = \frac{\text{MP} - \text{SP}}{\text{MP}} \times 100

Solution:

Let the CP be 100.
Then, MP = 100×120100=120100 \times \frac{120}{100} = 120
Profit is 10% of CP ;
So, SP = 100×110100=110100 \times \frac{110}{100} = 110
Now, 
Discount % = 120110120×100=10120×1008.33%\frac{120 - 110}{120} \times 100 = \frac{10}{120}\times 100 \approx 8.33\%
Thus, Discount % is 8.33%

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