The marked price of a shirt is 20% higher than cost price . A discount of 20% is given on the market price. Find the loss or gain percent.

Options

A. 4% gain
B. 4 % loss
C. 2% gain
D. 2% loss

Explanation

To solve the problem step by step, we will follow these calculations:

### Step 1: Define the Cost Price (CP)
Let's assume the cost price (CP) of the shirt is ₹100.

### Step 2: Calculate the Marked Price (MP)
The marked price (MP) is 20% higher than the cost price.
- To calculate the marked price:
\[ MP = CP + (20\% \text{ of } CP) = 100 + (0.20 \times 100) = 100 + 20 = ₹120 \]

### Step 3: Calculate the Discount
A discount of 20% is given on the marked price.
- To calculate the discount amount:
\[ \text{Discount} = 20\% \text{ of } MP = 0.20 \times 120 = ₹24 \]

### Step 4: Calculate the Selling Price (SP)
The selling price (SP) is the marked price minus the discount.
- To calculate the selling price:
\[ SP = MP - \text{Discount} = 120 - 24 = ₹96 \]

### Step 5: Determine Gain or Loss
Now, we need to find out if there is a gain or loss.
- Since the selling price (SP) is less than the cost price (CP), there is a loss.
- The loss amount is:
\[ \text{Loss} = CP - SP = 100 - 96 = ₹4 \]

### Step 6: Calculate Loss Percentage
To find the loss percentage, we use the formula:
\[ \text{Loss Percentage} = \left( \frac{\text{Loss}}{CP} \right) \times 100 \]
- Substituting the values:
\[ \text{Loss Percentage} = \left( \frac{4}{100} \right) \times 100 = 4\% \]

### Final Answer
The loss percentage is **4%**.

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