Question

A merchant who marked his goods up by 50% subsequently offered a discount of 20%. What is the percentage profit that the merchant will make after offering the discount

Answer 1

Answer:

Profit = 20%

Step-by-step explanation:

CP = cost price

SP = selling price

MP = marked price

The merchant marks up the goods 50%.

This means: MP is 50% more than CP

MP = CP + 50% of CP

MP = CP + 0.5*CP

MP = 1.5*CP ....(i)

The merchant offers a discount of 20%

This means: SP is 20% lower than MP

SP = MP - 20% of MP

SP = MP - 0.2*MP

SP = 0.8*MP ...........(ii)

Using (i) in (ii), we get:

SP = 0.8*1.5*CP

SP = 1.2*CP

SP = CP + 0.2*CP

SP = CP + 20% of CP

SP is 20% more than CP

=> Profit is 20%