If a shopkeeper marks a T-shirt 20% above the cost price and allows a discount of 10%, then find his profit percentage.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e 8%.
Let the cost price be ₹100.
Marked price = 20% above cost price = 100 + 20% of 100 = ₹120
Selling price = 10% discount on marked price = 120 - 10% of 120 = 120 - 12 = ₹108
Profit = Selling price - Cost price = 108 - 100 = ₹8
Profit percentage = (Profit ÷ Cost price) × 100 = (8 ÷ 100) × 100 = 8%