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The marked price of a shirt is twice of the cost price. To earn a gain of 20 percent, what should be the discount percentage?
Question

The marked price of a shirt is twice of the cost price. To earn a gain of 20 percent, what should be the discount percentage?

A.

40 percent

B.

37 percent

C.

47 percent

D.

45 percent

Correct option is A

Given:
Marked Price(MP) = 2 times Cost price(CP) 
Formula Used: 

Profit % = SPCPCP×100\frac{SP - CP}{CP} \times 100  

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

Solution:
Let the CP be 100.
Now, to gain 20% 
SP = 120 
As we know MP = 2 ×\times CP = 200
Discount % = 200120200×100=80200×100=40%\frac{ 200 - 120}{200} \times 100 = \frac{80}{200}\times100 = 40\% 
Thus, Discount% = 40 %

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