A dealer gains 20% by selling an article at 25% discount on its marked price. If the cost price of the article is decreased by 15%, how much discount percentage should he now given on the same marked price so as to earn the same percentage of profit as before?

Solution (By Examveda Team)

Let cost price = 100
Selling price = 120% of 100 = 120
Marked price = 120 × $$\frac{{100}}{{75}}$$ = 160

New cost price = 100 - 15 = 85
New selling price = 85 × $$\frac{{120}}{{100}}$$ = 102
Discount = 160 - 102 = 58
Discount = $$\frac{{58}}{{160}}$$ × 100 = 36.25%