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An article bought at 20% discount is sold at 25% profit. What is the profit or loss compared with the original price?
Question

An article bought at 20% discount is sold at 25% profit. What is the profit or loss compared with the original price?

A.

10% profit

B.

20% loss

C.

10% loss

D.

No profit or loss

Correct option is D

Given:
An article is bought at a 20% discount on the original price.
The article is sold at a 25% profit on the purchase price.
Solution:
Let the original price of the article be PP.
The purchase price after a 20% discount;
= P − 20% of P = 0.8P
Article sold at 25% profit;
Selling price = 1.25 × 0.8P = 1.0P
Since, the selling price equals the original price, there is no profit and no loss when compared with the original price.

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