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 = ?

Answer: Option A

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