If a trader marks the price of an article 50 percent more than the cost price and allows a discount of 30 percent, then what is his profit percentage?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 5 percent.
Let the C.P. of the article = Rs.100
M.P. is 50% more than C.P. = Rs. 150
Discount = 30%
Discount % = (Marked Price - Selling Price)/Marked Price × 100
Profit % = (Selling price- Cost price)/Cost price× 100
⇒ 150 × (100 - 30)%
⇒ 150 × 70%
⇒ 150 × 70/100
⇒ 15 × 7 = 105
Thus, the profit is 5%