Sona brought a car at some discount . If he sold it to hyer at 20% discount on market price, but still managed to make 25% profit, at what discount had Sona brought the car?
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Let the marked price be Rs. 100.
The trader buys at discount of 20%.
Hence, his cost price = 100 − 20% of 100 = Rs. 80.
He wants to make profit 25%, hence his selling price is =80 + 25% of 80 = Rs. 100.
However, he wants to get this Rs. 100 after allowing a discount of 20%, i.e. he will sell at 80% of his marked price.
Hence, his marked price = 100/0.08 = Rs. 125 which is 25% more than the original marked price.
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