A dealer marks 20% above the cost price and allows a 20% discount. What is the profit or loss per cent?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Loss of 4%.
Let cost price = 100
Marked price = 100 × 1.20 = 120
Selling price = 120 × (1 − 0.20) = 96
Loss = 100 − 96 = 4 → Loss % = (4/100) × 100 = 4%