Question

A shopkeeper buys an article for rupees 10000 he increased the price by 20% and then gives a discount of 20% on the increased price. Find whether he is in a profit or loss and by how much.

Answer 1

Cost Price = Rs 10,000

Find the price after 20% increase:

20% of Rs 10,000 = 0.2 x 10000 = Rs 2000

Price after increase = 10,000 + 2000 = Rs 12,000

Find the price after 20% discount:

20% of Rs 12,000 = 0.2 x 12000 = Rs 2400

Price after discount = 12000 - 2400 = Rs 9600

Compare:

Rs 9600 < Rs 10,000

⇒ It is a loss

Loss = 10,000 - 9600  = Rs 400

Answer: He made a loss of Rs 400

Answer 2

Hey there !!

Cost price of the article = 10,000

after increasing the price = 10,000/100×20 = 2000 = 12,000 rupees

now , after discount of 20% on the article = 12,000/100 × 20 = 2400

now , selling price of the article = 12,000-2400 = 9,600 rupees

now , here selling price is greater than the cost price of the article by rupees 400

hence , it made him a loss of RS 400

hope it helps !!