A dealer marks his goods at 20% above the cost price and allows a discount of 15%. What is his gain percentage?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 2%.
Let the CP be x
The goods are marked at 20% above the cost price. Therefore,
⇒ MP = x + 0.20x = 1.20x
A discount of 15% is allowed on the marked price.
⇒ SP = MP - 0.15 × MP
⇒ 1.20x - 0.15 × 1.20x
⇒ 1.20x(1 - 0.15)
⇒ 1.20x × 0.85 = 1.02x
Now,
⇒ Gain% = Gain/CP × 100
⇒ 0.02x/x × 100 = 2%
Thus, the gain percentage is 2%