An item with a cost price of Rs. 1650 is sold at a certain discount on a fixed marked price to earn a profit of 20% on the cost price. If the discount was doubled, the profit would have been Rs. 110. The rate of discount, in percentage, at which the profit percentage would be equal to the rate of discount, is nearest to
An item with a cost price of Rs. 1650 is sold at a certain discount on a fixed marked price to earn a profit of 20% on the cost price. If the discount was doubled, the profit would have been Rs. 110. The rate of discount, in percentage, at which the profit percentage would be equal to the rate of discount, is nearest to
Solution
✅ Correct Option: 3
Selling price at the original discount:
Since this SP comes from applying a discount on the Marked Price:
When the discount is doubled, profit :
Subtracting equation from :
Substituting back into :
A special discount rate is needed such that the profit percentage on CP also equals .
When discount , the SP becomes:
Setting profit on CP equal to :
This is nearest to .