A tradesman marks his goods at 45% above the cost price but allows a discount of 20% at the time of sale. His gain is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e 16%.
Let Cost Price (CP) = ₹100
Marked Price (MP) = 100 + 45% of 100 = ₹145
Selling Price (SP) = 80% of 145 = (80/100) × 145 = ₹116
Profit = SP - CP = 116 - 100 = ₹16
Profit % = (Profit / CP) × 100 = (16 / 100) × 100 = 16%