A trader marks his goods 50% above the cost price and offers a discount of 20%. What is the percentage profit the trader makes after offering the discount?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 20%.
Let the cost price (CP) = Rs.100
If the goods are marked 50% above the cost price
MP = 100 + 50% × 100 = 100 + 50 = Rs.150
the selling price (SP) after the discount = MP − 20% × MP
⇒ 150 − 20% × 150 = 150 − 30 = Rs.120
Profit = SP − CP = 120 − 100 = Rs. 20
Profit percentage = Profit/CP × 100 = 20/100 × 100 = 20%