The marked price is 20% higher then cost price. A discount of 20% is given on the marked price. By this type of sale, there is = ?

A. 4% loss

B. 2% loss

C. No loss no gain

D. 4% gain

Answer: Option A

Solution(By Examveda Team)

Let the cost price = 100 units
Marked price = 120 units
Selling price = 120 × $$\frac{{80}}{{100}}$$   = 96 units
There will be loss
$$\eqalign{ & {\text{Loss}}\% = \frac{{100 - 96}}{{100}} \times 100 \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = 4\% \cr} $$