A trader marks his goods at 60% above the cost price and allows a discount of 25%. What is his gain percent?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e 20%
Let the cost price of the goods be Rs.100, the marking price of the goods shall be Rs.160.
By applying the discount of 25% on the marked price = 160 × (1 - 0.25)
⇒ 160 × 0.75
⇒ Rs.120
The gain will be = Selling price - cost price
⇒ 120 - 100 = 20%