Question

A trader marks his goods at a price 20% higher than the cost price, but allows a discount of 5% at the time of selling. What is the percentage of profit for the trader.​

Answer 1

Answer:

Correct option is

C

20

Let the original C.P. be Rs. 100.

Then the marked price =50% of 100+100=150

S.P. =150−20% of 150 =150−30=120.

% profit =

100

(120−100)×100

=20%

Thus, the profit percent is 20%.

Step-by-step explanation:

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Answer 2

Answer:

Assume cost ₹100.

If he marks 20% higher than cost, markup will be 100×20% = ₹20.

Gross Sale price = ₹100+₹20 =₹120

Discount = 5% on 120 = ₹6*

Net Selling Price = ₹120-₹6=₹114

Net profit = ₹114-₹100 = ₹14

Profit % on sales = ₹14/₹114 = 12.28%

Profit % on cost = ₹14/₹100 = 14%

*Normally sale price is displayed to customer accordingly I have assume 5% discount on the sale price.