A shopkeeper marks up his price by 12% and then allows a 12% discount. What is his profit or loss percentage?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 1.44% loss
Let's assume the cost price is 100y.
A shopkeeper marks up his price by 12%.
Marked price = 100y of (100 +12) %
= 100y of 112%
= 100y × 112/100
= 112y
Then allows a 12% discount.
Selling price = 112y of (100 -12)%
= 112y of 88%
= 112y × 88/100
= 98.56y
Loss percentage ={(cost price - selling price)/cost price} × 100
= {(100y - 98.56y)/100y} × 100
= (1.44y/100y) × 100
= 1.44%