By Ajay Kumar

Verified by Ajay Kumar

An item is marked at 20% more than its cost price by the retailer. He then offers a 10% discount. Determine the shopkeeper's percentage of profit.

  1. 10%

  2. 8%

  3. 12%

  4. 15%

Answer: B

Solution

Assume CP = ₹100. Marked price = \(100\times\frac{120}{100}=120\)₹. Selling price after 10% discount = \(120\times\frac{90}{100}=108\)₹. Profit = ₹108 - ₹100 = ₹8. Profit percentage = \(\frac{8}{100}\times100=8\%\). Trick: Net profit percentage = \(20-10-\frac{20\times10}{100}=8\%\).

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