Discussion Forum : True Discount
Question - A tradesman marks his goods at 25% above its cost price and allows purchasers a discount of 12$1/2$% for cash payment. The profit, he thus makes, is
Options:
A .  9$1/2$%
B .  8$3/8$%
C .  8$1/2$%
D .  9$3/8$%
Answer: Option D
Answer: (d)Let the cost price of article = Rs.100Marked price = Rs.125SP of the article= $(100 - 25/2)$% of 125= $175/2$% of 125= ${125 × 175}/{2 × 100} = 875/8$= Rs.109$3/8$Gain percent= $(109{3/8} -100) = 9{3}/8$%Using Rule 8,Here, r = 25%, $r_1 = 12{1}/2$% = 12.5%Profit % = ${r × (100 - r_1)}/100 - r_1$= ${25 × (100 - {12.5})}/100 - {12.5}$= ${25 × 87.5}/100 - 12.5$= 21.875 - 12.5= 9.375 = 9$3/8$%

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