Discussion

Chandrika raised the price of their products by 40%. How much discount should they give so as to sell the products on no profit no loss basis?

Answer: B

Let the original price be 100. After the rise it is 140, and the discount \( d \) must bring it back to 100 exactly.

\[ 140(1 - d) = 100 \quad\Longrightarrow\quad 1 - d = \frac{100}{140} = \frac{5}{7} \]

\[ d = \frac{2}{7} = 0.2857 = 28.57\% \approx 28.5\% \]

A 40% rise is not undone by a 40% cut, because the cut is applied to the larger figure. The general result is

\[ d = \frac{x}{100 + x} \times 100 \]

which for \( x = 40 \) gives \( \tfrac{40}{140} \times 100 = 28.57\% \).

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