Question

A shopkeeper claims to sell his articles at a discount of 10%, but marks his articles by increasing the cost of each by 20%. His gain per cent is:

(a) 6%

(b) 8%

(c) 10%

(d) 12%

Answer 1

Correct option is (b) 8%

Let the C.P. = Rs.100.

Then, the M.P. at 20% up = Rs(100 + 20) = Rs.120

The discount = 10% on the M.P.

∴ The S.P. = Rs.\(\left(120 - 120 \times \frac{10}{100}\right)\)

= Rs 108

So, the gain = S.P − C.P

= Rs(108 − 100)

= Rs. 8

∴ The gain percent = 8%.

(since the C.P. is Rs. 100).