The marked price of a desk is ₹7,725, which is 25% above the cost price. It is sold at a discount of 4% on the marked price. Find the profit percentage.​

Correct option is C

Given:

Marked Price (MP) = ₹7,725

MP is 25% above Cost Price (CP) 

MP = 1.25 × CP

Discount on MP = 4% 

Selling Price (SP) = 0.96 × MP

Formula Used:

​$$\text{Profit \%} = \dfrac{\text{SP} - \text{CP}}{\text{CP}} \times 100$$​​

Solution:
CP$$=\frac{7725}{1.25}=7725\times \frac{4}{5}$$​=₹6180
SP =$$0.96\times 7725=₹74$$​16
Profit=7416 - 6180 = ₹1236
​$$\text{Profit \%}=\frac{1236}{6180}\times 100$$​=20%

Alternate Method:
Net effect from CP to SP = (+25%) then (-4%):
25 + (-4) +$$\frac{25 \times (-4)}{100} = 21 - 1 = +2$$​0%
So profit% = (20%).