Question

A trader marked 50% higher price on an article and later gave 20% discount on it. What percentage of profit did the merchant get after giving a discount?

 

A. 30%

B. 125%

C. 25%

D. 20%

1. A
2. B
3. C
4. D

Answer 1

Correct Answer - Option 4 : D

Given:

Markup% (M%) = 50%

Discount% (D%) = 20%

Formula used:

MP = CP × (100 + M%)/100

SP = MP × (100 – D%)/100

P% = (P/CP) × 100

Where, MP is Marked Price, SP is Selling Price, CP is Cost Price, M% is Markup%, P% is Profit%, and D% is Discount%

Calculation:

Let the CP be 100

MP = CP × (100 + M%)/100 = 100 × (100 + 50)/100

⇒ MP = 150

SP = MP × (100 – D%)/100 = 150 × (100 – 20)/100

⇒ SP = 120

P = SP – CP = 120 – 100 = 20

P% = (P/CP) × 100 = (20/100) × 100

∴ Profit percentage is 20%