Question

A trader marked the price of his commodity so as to include a profit of 25%. He allowed discount of 16% on the marked price. What was his actual profit
(in percentage)?​

Answer 1

✰✰|| Given ||✰✰

• Marked price of commodity = price + 25% of price

• Discount allowed = 16%

• price after discount = marked price - 16% of marked price

✰✰|| To Find ||✰✰

• Actual Profit percent

✪|| Solution ||✪

Let, the price of commodity be 100

marked price = price + 25% of price

→ marked price = 100 + 25% of 100

→ marked price = 100 + 25

→ marked price = 125

price after discount = marked price - 16% of marked price

→ price after discount = 125 - 16% of 125

→ price after discount = 125 - 20

→ price after discount = 105

Actual Profit percent = 105 - 100/100 × 100

→ Actual Profit percent = 5/100 × 100

→ Actual Profit percent = 5%

Actual Profit percent is 5%