A retailer buys a water purifier for Rs. 8,000 and marks it at 25% above its cost. During a promotional offer, the marked price is reduced successively by 20% and 4.8%. Determine the retailer's overall profit or loss percentage.

The correct option is Loss of 4.8%.

To determine whether the retailer incurs an overall profit or loss and calculate its percentage, we will break the problem down into step-by-step calculations for Cost Price (CP), Marked Price (MP), and final Selling Price (SP).

Step 1: Calculate the Marked Price (MP)
The cost price of the water purifier is Rs. 8,000, and it is marked up by 25% above its cost price.

$\text{Cost Price (CP)}=\text{Rs. 8,000}$

$\text{Marked Price (MP)}=\text{CP}+\left(25\text{\% of CP}\right)$

$\text{MP}=8000+(\frac{25}{100}\times 8000)$

$\text{MP}=8000+2000=\text{Rs. 10,000}$

Step 2: Calculate the Selling Price (SP) after successive discounts
The marked price of Rs. 10,000 is reduced successively by 20% and 4.8%.

Price after the first discount of 20%:

$\text{Price after 1st discount}=10000-(\frac{20}{100}\times 10000)$

$\text{Price after 1st discount}=10000-2000=\text{Rs. 8,000}$

Final Selling Price after the second discount of 4.8% on Rs. 8,000:

$\text{Selling Price (SP)}=8000-(\frac{4.8}{100}\times 8000)$

$\text{SP}=8000-384=\text{Rs. 7,616}$

Step 3: Determine the overall Profit or Loss percentage
Since the final Selling Price (Rs. 7,616) is less than the original Cost Price (Rs. 8,000), the retailer incurs a loss.

$\text{Loss}=\text{Cost Price}-\text{Selling Price}$

$\text{Loss}=8000-7616=\text{Rs. 384}$

Now, calculate the Loss Percentage based on the original Cost Price:

$\text{Loss Percentage}=\left(\frac{\text{Loss}}{\text{Cost Price}}\right)\times 100$

$\text{Loss Percentage}=\left(\frac{384}{8000}\right)\times 100$

$\text{Loss Percentage}=\frac{384}{80}=4.8\text{\%}$

Therefore, the retailer experiences an overall Loss of 4.8%.