Question

4. Santosh purchased a watch at 20% discount on its marked price but
the profit percent of Santosh on this transaction

Answer 1

Answer:

Let P be the marked price,

then the cost to santosh was (0.8)P, which represents a 20% discount.

When he sold the watch, his profit was P - .8P = 0.2 P

The percent gain = (Profit/Cost)* 100 = (.2p/.8P)*100 = 25%

If the marked price is $100, he spends $80. He sells it for $100, so he makes $20 on his $80 investment, and $20 is 25% of $80, so this answer makes sense.