A shopkeeper buys an article for ₹450. He marks up its price by 20%. He then offers a discount of 10% on the marked price to a customer. What is the profit percentage the shopkeeper makes on this transaction?
Show answer & explanation
Correct answer: B
Explanation
Cost Price = ₹450
Marked Price = 450 + 20% of 450
= 450 + 90 = ₹540
Selling Price = 540 − 10% of 540
= 540 – 54 = ₹486
Profit = 486 – 450 = ₹36
Profit Percentage -
= (36 ÷ 450) × 100 = 8%