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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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