Question 88

A merchant marks the price of his articles 20% above the cost price. If he allows 20% discount, then what is the profit or loss percentage?

Solution

Let cost price = Rs. $$100x$$

=> Marked price = $$100x+(\frac{20}{100}\times100x)=Rs.$$ $$120x$$

Discount % = 20%

=> Selling price = $$120x-(\frac{20}{100}\times120x)=Rs.$$ $$96x$$

$$\because$$ Selling price < Cost price, thus loss % = $$\frac{(100x-96x)}{100x}\times100=4\%$$

=> Ans - (C)

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