After increasing the selling price of an article by 25 percent, the new price of the article becomes Rs. 250. Now a discount of 6.25 percent is offered on the new price. What would be the profit or loss in percentage on the original price?
AProfit of 6.25%
BLoss of 6.25% ✓ Correct
CLoss of 12.5%
DProfit of 12.5%
Correct answer: (B) Loss of 6.25%
Explanation
There is a loss of 6.25%.
The price after the 25% increase is 250, which serves as the reference price.
Discount = 6.25% of 250 = 15.625.
Selling price after discount = 250 - 15.625 = 234.375.
The reduction of 15.625 on 250 is 15.625/250 x 100 = 6.25%.
So the net effect on that price is a 6.25% loss.
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