Question

A dealer marks his goods at 35% above the cost price & allows a discount of 20% on the marked price. Find his gain or loss percent?
1. 8%
2. 7%
3. 6%
4. 5%

Answer 1

Correct Answer - Option 1 : 8%

GIVEN:

Marked price = 35% above cost price.

Discount = 20%

CALCULATION:

Let the cost price be 100%.

Marked price = 135% of cost price

⇒ Marked price = 135%

⇒ Discount = 20%

⇒ Selling price = 80% of MP

⇒ Selling price = 80% of 135%

⇒ Selling price = 108%

Profit = Selling price - Cost price

⇒ Profit = 108% - 100%

⇒ Profit = 8%

∴ The Profit percentage is 8%.