Question

b) The price of a watch is marked Rs 11,250. When it is sold allowing 20% discount,
20% profit is made. By what percent is the discount to be reduced to increase the profit by 3%?​

Answer 1

Answer:

The discount is to be reduced by 2% to increase the profit by 3%

Step-by-step explanation:

The marked price of the watch=11,250

When it is sold allowing a discount of 20% its selling price become =11250×(100-20)/100

=11250×80/100

=9000

By selling it at 9000, a profit of 20% is made.

so the cost price is= 9000×100/(100+20)

=9000×100/120

=7500

Now, the profite is needed to be increase by 3%

Then the profit will be=(20+3)%=23%

now at 23% profit, the selling price is

= 7500×(100+23)/100

=7500×123/100

=9225

So, the discount is needed to be reduce by ₹(9925-9000)=225

So the discount is to be reduced by

=225×100/11250

=2%