A trader buys an article at ₹3,500 and marks it up by 35%. He gives two successive discounts of 20% and 10%. What is his net profit or loss percentage?
Show answer & explanation
Correct answer: C
Explanation
Given:
Cost Price (CP) = ₹3500
Mark-up = 35%
Successive Discounts = 20% and 10%
According to the formula:
Marked Price (MP) = CP × (100 + Mark-up %) / 100
Selling Price (SP) = MP × (100 − 20) / 100 × (100 − 10) / 100
Marked Price = 3500 × 135/100 = 4725
Selling Price = 4725 × 80/100 × 90/100
= 4725 × 0.8 × 0.9
= 4725 × 0.72
= 3402
Loss = 3500 − 3402 = 98
Loss % = (98 / 3500) × 100 = 2.8%