Profit, Loss & Discount • Topic 3 of 6

Discount & Successive Discount

Discount is always a percentage of the MARKED price, not the cost or selling price. SP = MP × (1 − d/100). When a shop offers two discounts back to back, you cannot add them — the second discount applies to the already-reduced price. Apply them as a multiplier chain: SP = MP × (1 − d1/100) × (1 − d2/100). The net single discount equivalent to d1 then d2 is d1 + d2 − d1·d2/100 (note the MINUS, since both reduce). Because profit is on CP and discount is on MP, CAT mixes the two freely: a shopkeeper can mark up 50%, give 20% off, and still profit 20% — the trick is to track MP and CP separately and only compare SP to CP at the end. Assuming CP = 100 keeps every number clean.

✅ Solved examples

1. A book marked at ₹500 is sold at a 12% discount. Find the selling price.
SP = 500 × 0.88 = ₹440.
2. Successive discounts of 20% and 25% are given on an MP of ₹2,000. Find the SP.
SP = 2000 × 0.80 × 0.75 = 2000 × 0.60 = ₹1,200.
3. An article is marked 40% above cost and sold at a 30% discount. Find the loss or profit %.
Take CP 100 ⇒ MP 140 ⇒ SP = 140 × 0.70 = 98 ⇒ loss of ₹2 = 2%.
4. After a single discount of 36% an item sells for ₹320. Find the marked price.
SP = MP × 0.64 ⇒ MP = 320 / 0.64 = ₹500.

✏️ Practice — try these, take hints as needed

1. MP ₹1,200, discount 15%. Selling price?
SP = MP × (1 − d).
1200 × 0.85.
Multiply.
₹1,020
2. Successive discounts 10% and 20% on MP ₹5,000. SP?
Chain the multipliers.
5000 × 0.9 × 0.8.
5000 × 0.72.
₹3,600
3. CP ₹200, marked 25% up, 20% discount. Profit/loss %?
MP = 250.
SP = 250 × 0.8 = 200.
Compare SP with CP.
No profit, no loss (0%)
4. An item sold at ₹459 after a 15% discount. Marked price?
SP = MP × 0.85.
MP = 459/0.85.
Divide.
₹540
5. After discounts of 25% then 10%, an item costs ₹1,350. Marked price?
Net multiplier 0.75 × 0.90.
= 0.675.
MP = 1350/0.675.
₹2,000

📝 Topic test — 8 questions

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