Question

Pawan marks an article 40% above the cost price and allows a 20% discount on the marked price. Find the profit%.
1. 12%
2. 18%
3. 8%
4. 16%

Answer 1

Correct Answer - Option 1 : 12%

Given:

M.P = 40% above the cost price

Discount = 20%

Formula used:

S.P = M.P × [(100 – Discount%)/100]

Calculation:

Let CP be 100x

MP = 100x × (140/100) = 140x

S.P = 140x × (80/100) = 112x

Gain = 112x – 100x = 12x

Profit% = (12x/100x) × 100% = 12%

∴ The profit% is 12%