After increasing the selling price of an article by 25%, the new price of the article becomes Rs. 250 . Now a discount of 25% is offered on the new price. What would be the profit or loss in percentage on the original price.

Question

Question

This question was previously asked in

UGC NET Official Paper-I (Held On: 03 Mar, 2023 Shift 1)

Answer 1

Formula used:

Profit or Loss Percentage = [(Selling Price - Cost Price)/Cost Price] × 100

Calculation:

Selling Price after 25% increase = Rs. 250

Let's assume the original cost price is 'C'

New Selling Price = Original Cost Price + 25% of Original Cost Price

⇒ 250 = C + 0.25C

⇒250 = 1.25C

⇒ C = 250/1.25

⇒ C = Rs. 200

So, the original cost price is Rs. 200.

Discounted Selling Price = 75% of New Selling Price

Discounted Selling Price = 0.75 × 250

Discounted Selling Price = Rs. 187.5

Profit or Loss Percentage = [(Selling Price - Cost Price) / Cost Price] × 100

Profit or Loss Percentage = [(187.5 - 200) / 200] × 100

Profit or Loss Percentage = (-12.5 / 200) × 100

Loss Percentage = -6.25%

Therefore, the correct answer is option 2.

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