Profit and Loss – Calculating rate of discount from marked and selling price: An umbrella is marked at Rs 80 and sold for Rs 68. What is the rate of discount allowed?

Introduction / Context:The discount rate is the reduction from the marked price relative to the marked price.

Given Data / Assumptions:

• Marked price (MP) = Rs 80
• Selling price (SP) = Rs 68

Concept / Approach:Discount% = (MP - SP) / MP * 100.

Step-by-Step Solution:Discount = 80 - 68 = 12Discount% = 12 / 80 * 100 = 15%

Verification / Alternative check:15% of 80 is 12, so SP becomes 68, which matches.

Why Other Options Are Wrong:12% and 10% use wrong bases or arithmetic; 17.5% and 20% are too high.

Common Pitfalls:Dividing by SP instead of MP.

Final Answer:15%