Question

If the discount amount given in an item is 25% of its selling price,then the actual rate of discount is
a)50/3%
b)20%
c025%

Answer 1

Answer:

• The actual rate of discount is b) 20%.

Step-by-step explanation:

Given:

• The discount amount given in an item is 25% of its selling price.

To Find:

• The actual rate of discount.

Let us assume:

• The selling price of an item be 100.

Finding the discount:

↠ Discount = 25% of SP

↠ Discount = 25% of 100

↠ Discount = 25

Finding the marked price:

↠ MP = SP + Discount

↠ MP = 100 + 25

↠ MP = 125

Finding the actual rate of discount:

↣ MP = (100 × SP)/(100 - D%)

Putting the values.

↣ 125 = (100 × 100)/(100 - D%)

↣ 125(100 - D%) = 10000

↣ 12500 - 125D% = 10000

↣ 125D% = 12500 - 10000

↣ 125D% = 2500

↣ D% = 2500/125

↣ D% = 20

Hence,

• The actual rate of discount is 20%.

Abbreviations used:

• SP = Selling price
• MP = Marked price
• D% = Discount percentage

Answer 2

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Refer the attached image.

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D = MP - SP

SP = MP - D

MP = SP + D