A shopkeeper fixes the marked price of an item 35% above its cost price. The percentage of discount allowed to gain 8% is :

Let the cost price = Rs. 100

then, Marked price = Rs. 135

Required gain = 8%,

So Selling price = Rs. 108

Discount = 135 - 108 = 27

Discount% = \(\left ( \frac{27}{135} \times 100 \right )\) = 20%