Delhi Police Constable Exam Model Paper 2

Given:
Marked price (MP) = 160% of Cost price (C.P.)
Profit = 20%
Formula used:
Cost price × (100 + Profit percentage)/100 = Selling price
Marked Price × (100 - Discount percentage)/100 = Selling price
Calculation:Let the cost price be 100 and discount percentage be D
So, Marked price = 160 and Selling price = 120
According to Question,
$160\times \frac{\left(100-\mathit{D}\right)}{100}=120$
⇒ $\left(100-\mathit{D}\right)=3\times \frac{100}{4}$
⇒ $100-\mathit{D}=75$
⇒ $\mathit{D}=25$
∴ Discount percentage = 25%