A seller allows 20% discount for cash payment on the marked price of his goods. What is the ratio of the cash payment to the marked price
Answer Details
If the seller allows a 20% discount for cash payment, then the customer will only have to pay 80% of the marked price.
Let MP be the marked price and CP be the cash payment.
CP = 80% of MP
CP/MP = 80/100
CP/MP = 4/5
Therefore, the ratio of the cash payment to the marked price is 4:5.
So the correct answer is option (D) 4:5.