Correct Answer - Option 1 : 29.6%
Given:
Selling an article at 7/12 of its selling price
Loss = 16%
He sells at original price = 90%
Formula used:
Profit = SP – CP
Profit% = (Profit/CP × 100)
Calculation:
According to the question
⇒ SP/12 = New SP/7
⇒ 16% = (16/100) = 4/25
Now,
Cost price of an article = 25
New selling price of an article = 21
⇒ 7New SP= 21
⇒New SP = 3
The selling price of an article = (3 × 12) = 36
Now,
⇒ (90% of 36)
⇒ (90/100 × 36)
⇒ 32.4
Profit = (32.4 – 25) = 7.4
Profit% = (7.4/25 × 100)
⇒ 29.6%
∴ The loss percentage is 29.6