A merchant gains 20% after allowing a discount of 10% on the marked price. Find his profit percentage if no discount were allowed.
Show answer & explanation
Correct answer: C
Explanation
Let the marked price = 100
Selling price after 10% discount = 90
Cost price at 20% profit = 90 / 1.2 = 75
If no discount is given, selling price = 100
Profit = 100 − 75 = 25
Profit percentage = (25 / 75) × 100 = 33.33%