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A man sold an article for ₹405 by giving a discount of d% on its marked price. If the marked price of the article is ₹540, then what is the value of d?
12.5
20
12
25
25
Calculate the absolute discount first: 540 - 405 = 135. Since 135 is exactly one-fourth of 540 (135 * 4 = 540), the discount is 1/4 or 25%.
Marked Price (MP) = ₹540, Selling Price (SP) = ₹405, Discount Percentage = d%
d=(MPMP−SP)×100
Calculate the absolute discount first: 540 - 405 = 135. Since 135 is exactly one-fourth of 540 (135 * 4 = 540), the discount is 1/4 or 25%.
Many students subtract the SP from MP but forget to divide by the Marked Price, instead dividing by the Selling Price (calculating discount on SP incorrectly).
Identify given values
The marked price (MP) is ₹540 and the selling price (SP) is ₹405.
MP=540,SP=405
Calculate discount amount
Discount is the difference between the marked price and the selling price.
Discount=540−405=135
Calculate discount percentage
Apply the discount percentage formula: d=(Discount/MP)×100.
d=(540135)×100=0.25×100=25
D is correct because the discount percentage is calculated as (135 / 540) * 10⁰ which equals 25.
This is a fundamental concept in Profit and Loss. Remember that Profit % is always on Cost Price (CP), whereas Discount % is always on Marked Price (MP).