can anyone help how to solve the following problem ? I am struggling
If an article is sold at 80% of its present selling price,the merchant will make a loss of 4%.What is the % profit does he make by selling at the current selling price?
P.S: Answer choices was not provided.
SP = selling price
CP = Cost Price
80% of SP = 80/100 (SP) = 4/5(SP)
-- Given ---
[ CP minus (80% of SP)] / CP = 4%
so ( CP - 4/5SP ) / CP = 4/100 -------> EQ 1
when you solve EQ 1, you get
SP = 6/5 CP
Now the profit % if you sell at current selling price.. Let x be the profit %.
CP + CP (x/100) = SP
CP + CP * x/100 = 6/5 CP
1 + x/100 = 6/5
x/100 = 1/5
So prift % = 20%
MGMAT1 - 540 ( Trying to improve )