At a shop, when an item is sold at 10% discount on the label price, the profit is equivalent to 5% of the label price. When it is sold at a 20% discount, then how much is the loss or gain percentage?
Solution: This is a Profit and Loss question, which uses simple percentage formula.
Suppose x is the label price, y is the cost price and z is the profit / loss when the item is sold at 20% discount.
Equation (1)………….Selling price – Cost Price = Profit
Where, selling price = Label price – 10%* Label price
=> 90% * Label price
Plugging in values in Equation (1), we get,
Equation (2) ………….90%*x – y = 5% * x
When the item is sold at a 80% discount, the equation becomes,
Equation (3) ………….80%*x – y = z%*x
Solving equations (2) and (3), we get,
X / 10 = (5 – z) *x / 100
Z = - 5 , i.e. 5% loss
A loss of 5% would be incurred, if the item is sold at a 20% discount.
Correct Answer: D
Essential GMAT Reading Comprehension Guide
After reading F1GMAT’s Essential GMAT Reading Comprehension Guide, you will:
1. Complete GMAT RC Questions in less than 1 minute and 50 seconds
2. Read Faster
3. Take Notes Effectively
4. Collect and Interpret Facts
5. Speed up Summary Creation
6. Remember Information
7. Question the Author
8. Learn to Answer GMAT Reading Comprehension Title question
9. Learn to Answer GMAT Reading Comprehension Main Idea Question
Mastering GMAT Critical Reasoning
After you read F1GMAT’s Mastering GMAT Critical Reasoning Guide, you will learn:
How to overcome flawed thinking in GMAT Critical Reasoning?