Question

A tradesman charges 20% above the cost price but allowed a discount of 10% for cash payment. What is gain percent?

1. 5%
2. 8%
3. 10%
4. 12%
5. None of these

Answer 1

Correct Answer - Option 2 : 8%

Given

Marked price = 20% above the cost price

Discount = 10%

Formula Used

Profit% = ((S.P – C.P)/100) × 100

Calculation:   

Let cost price of item = 100 Rs.

Marked price = 120 Rs

Discount = 120 × 10/100 = 12 Rs.

Net S.P = 120 – 12 = 108 Rs.

Profit% = (8/100) × 100 = 8%

∴ The required answer is 8%