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Emdadul28
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An article costing Rs. 20 was marked 25% above the cost price. Updated on: 22 Aug 2026, 11:25
Originally posted by Emdadul28 on 29 Oct 2016, 12:20.
Last edited by Bunuel on 22 Aug 2026, 11:25, edited 2 times in total.
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D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

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85% (hard)

Question Stats:

60% (03:19) correct 40% (03:02) wrong based on 194 sessions

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An article costing Rs. 20 was marked 25% above the cost price. After two successive discounts of the same percentage, the customer now pays Rs. 20.25. What would be the percentage change in profit had the price been increased by the same percentage twice successively instead reducing it?

A. 3600%
B. 3200%
C. 2800%
D. 4000%
E. 3800%
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D
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rohit8865
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An article costing Rs. 20 was marked 25% above the cost price. 30 Oct 2016, 10:45
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Emdadul28
Quote:
An article costing Rs. 20 was marked 25% above the cost price. After two successive discounts of the same percentage, the customer now pays Rs. 20.25. What would be the percentage change in profit had the price been increased by the same percentage twice successively instead reducing it?

a) 36000%
b) 32000%
c) 28000%
d) 40000%
e) 3800%
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Emdadul28

Ans should be 4000% not 40000%-------Emdadul28 plz confirm..

Mark up price=20+25%of 20=25
Let the discount be x%
after 2 discount--------->25(1-x/100)^2=20.25
sq rt both sides------->5(1-x/100)=4.5
thus x=10%

instead discount if he increases by 10% 2 times then new price=
25(1+10/100)^2----->30.25
So the net profit after discount by 10% 2 times-----> 20.25=20(1+x/100)--------->x=1.25%
net profit After increase in price by 10% 2 times------>30.25=20(1+x/100)---------->x=51.25%

thus profit change= (51.25-1.25)*100/1.25------->4000%

Ans D
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Emdadul28
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An article costing Rs. 20 was marked 25% above the cost price. 30 Oct 2016, 11:50
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Emdadul28
Quote:
An article costing Rs. 20 was marked 25% above the cost price. After two successive discounts of the same percentage, the customer now pays Rs. 20.25. What would be the percentage change in profit had the price been increased by the same percentage twice successively instead reducing it?

a) 36000%
b) 32000%
c) 28000%
d) 40000%
e) 3800%


Ans should be 4000% not 40000%------- plz confirm..

Mark up price=20+25%of 20=25
Let the discount be x%
after 2 discount--------->25(1-x/100)^2=20.25
sq rt both sides------->5(1-x/100)=4.5
thus x=10%

instead discount if he increases by 10% 2 times then new price=
25(1+10/100)^2----->30.25
So the net profit after discount by 10% 2 times-----> 20.25=20(1+x/100)--------->x=1.25%
net profit After increase in price by 10% 2 times------>30.25=20(1+x/100)---------->x=51.25%

thus profit change= (51.25-1.25)*100/1.25------->4000%

Ans D
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SORRY Bro It actually 4000%. I did not noticed it. Your answer is right.
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An article costing Rs. 20 was marked 25% above the cost price. 26 Jun 2020, 21:49
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Case 1: CP = 20, MP = 20% over the CP = 20 * 125 / 100 = 25
Let the discount = x
Then 25 *(100 - x/100) * (100 - x/100) / 100 = 20.25
(100 - x) ^2 = (20.25 * 100 * 100) / 25
100 - x)^2 = 8100
100 - x = 90
x = 10%

Case2: After marking up by 25%, he increases it twice by 10%.

25 * (110 / 100) * (110/100) = 30.25

Profit = SP - CP
Profit in Case 1: = 20.25 - 20 = 0.25
Profit in Case 2: = 30.25 - 20 = 10.25

% Increase = (Difference / Smaller number) * 100 = [(10.25 - 0.25) / 0.25) * 100] = (10/0.25) * 100 = 4000%
_______________________________

Things to note.

(1) If there is a % increase, it will increase from 100 and if there is a % decrease, it would have decreased from 100%. For e.g, if a value of 20, increases by 25%, we can write it as 20 * (100 + 25) / 100 = 25
Similarly, if a value of 20 decreases by 10%, then the final value is 20 * (100 - 10) /100 = 18


(2) A % increase, will increase the initial value and give us the final value. A markup % and Profit % are based on %
increase and increases the initial value to give the final value. In both cases CP is the initial Value.
If a markup% is involved, then the final value is the Marked Price (MP) and is given by

CP (100 + Markup%) / 100 = MP

If a Profit% is involved, then the final value is the Selling Price (SP) and is given by

CP (100 + Profit%) / 100 = SP

(3) Similarly, a % decrease, will decrease the initial value and give us the final value. A Discount % and Loss % are based on % decrease and decreases the initial value to give the fial value.

If a Discount% is involved, then the initial Value is the MP and final value is the SP and is given by

MP (100 - Discount%) / 100 = SP

If a Loss% is involved, then the initial value is the CP and the final value is the Selling Price (SP) and is given by

CP (100 - Loss%) / 100 = SP

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An article costing Rs. 20 was marked 25% above the cost price. 22 Aug 2026, 21:51
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Hi Bunuel, is there a shorter method to solve such problems on the actual exam? Spending 3 minutes is a bit much on this. It would be great if you could help out.
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An article costing Rs. 20 was marked 25% above the cost price. 23 Aug 2026, 09:30
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Emdadul28
An article costing Rs. 20 was marked 25% above the cost price. After two successive discounts of the same percentage, the customer now pays Rs. 20.25. What would be the percentage change in profit had the price been increased by the same percentage twice successively instead reducing it?

A. 3600%
B. 3200%
C. 2800%
D. 4000%
E. 3800%
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A shorter route:

Marked price = 20 * 1.25 = 25.

After two equal discounts, price becomes 20.25.

20.25/25 = 0.81 = 0.9^2

So each discount is 10%.

If instead the price were increased by 10% twice:

25 * 1.1^2 = 30.25

Old profit = 20.25 - 20 = 0.25
New profit = 30.25 - 20 = 10.25

Increase in profit = 10

10/0.25 * 100 = 4000%

Answer: D.
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