Question

A shopkeeper professes to sell all things at a discount of 10%, but increases the SP of each article by 20%. His gain on each article is

Answer 1

Rate increase of 20% on SP makes it 100% + 20% = 120%.

Later, the 10% discount makes it 120% - (120/10)% = 120% - 12% = 108%.

Thus gain is 108% - 100% = 8%.

Thank you.

Answer 2

Let us see this problem with an example.

Suppose an article costs 100 rupees (SP).

So, SP=100

Now he increases the price by 20%

So, new SP=120

Give discount of 10%.

Thus, final SP=108.

So, ultimately he profits 8 rupees, that is he profits by 8℅.