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Profit & Loss (Discount)
Mahad marks an article 15% above the cost price of Rs. 540. What must be his discount percentage if he sells it at Rs. 496.80?
Explanation and memory cue
The marked price is 15% above the cost price of Rs. 540, so the marked price = 540 + 0.15 × 540 = Rs. 621. The selling price is Rs. 496.80, so the discount amount = 621 - 496.80 = Rs. 124.20. The discount percentage = (124.20 / 621) × 100 ≈ 20%. Therefore, the correct discount percentage is 20%, which corresponds to option C.