A trader buys an item at Rs. 500 and marks it up by 60%. If he then offers a 25% discount on the marked price, what is his profit percentage?
Show answer & explanation
Correct answer: A
Explanation
Cost Price = 500, Increase = 60%, Discount = 25%
MP = 500 × 1.6 = 800
SP = 800 × 0.75 = 600
Profit = 600 − 500 = 100
Profit % = (100 / 500) × 100 = 20%