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Question
A shopkeeper decides to sell a certain item at a certain price. He tags the price on the item by increasing the decided price by 25%. While selling the item, he offers 20% discount. Find how many more or less percent he gets on the decided price.
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Solution
Let the decided price of the item be ₹ 100.
∴ Marked price of the item = ₹ 100 + 25% of ₹ 100
= ₹ 100 + ₹ 25
= ₹ 125
Discount on the item = 20% of ₹ 125
= \[\frac{20}{100} \times 125\]
= ₹ 25
∴ Selling price of the item = Marked price of the item − Discount on the item
= ₹ 125 − ₹ 25
= ₹ 100
Since the decided price of the item is same as the selling price of the item so the shopkeeper neither makes any profit nor any loss on selling the item.
Thus, the shopkeeper gets 0% on the decided price.
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