Correct Answer - Option 2 : Profit 12%
Given:
The marked price of TV = 40% higher than CP
Discount is given by the Trader = 20%
Formula used:
S.P = M.P × (100 – D%)/100
S.P = C.P × (100 + P%)/100
P = S.P – C.P
P% = (P/C.P) × 100
Where,
S.P → Selling price
M.P → Marked price
D% → Discount%
P% → Profit%
P → Profit
C.P → Cost price
Calculation:
Let the price of T.V be 100x
Marked price is 40% more = 100x + 100x × (40/100) = 140x
S.P of the T.V after 20% discount = 140x × 80/100 = 112x
Profit = 112x – 100x = 12x
Profit% = (12x/100x) × 100
⇒ Profit% = 12%
∴ Profit% is 12%