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GATE 2021 CH – Question 7

General Aptitude · Quantitative Aptitude: Arithmetic and Number Computation · 2 marks · Multiple choice

Details of prices of two items P and Q are presented in the table. The ratio of cost of item P to cost of item Q is 3:4. Discount is calculated as the difference between the marked price and the selling price. The profit percentage is calculated as the ratio of the difference between selling price and cost, to the cost.

ItemsCost (₹)Profit %Marked Price (₹)
P5,400---5,860
Q---2510,000

The discount on item Q, as a percentage of its marked price, is _____

  1. 25
  2. 12.5
  3. 10
  4. 5

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Show answer and explanation

Correct answer: (C) 10

Explanation

**Find the cost of Q.** Since $C_P:C_Q=3:4$, $C_Q=5400(4/3)=7200$.

**Include the 25% profit on cost.** The selling price is $S_Q=7200(1.25)=9000$.

The discount is $10000-9000=1000$. As a percentage of the **marked** price it is $100(1000/10000)=\mathbf{10\%}$. **Answer: C.**