Multiple choice

A shopkeeper marks his goods 20% above cost price, but allows 10% discount for cash. What percent profit does he actually make?

  1. 9

  2. 10

  3. 12

  4. 8
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let cost price be 100. Marked price is 120. A 10% discount on 120 is 12, so the selling price is 108. The profit is 108 - 100 = 8%.

AI explanation

Using the successive percentage formula for net profit or loss when a markup is followed by a discount, the net percentage change is x + y + (xy / 100). Substituting a 20% markup and a negative 10% discount gives 20 - 10 - (20 * 10 / 100) = 8. The result is an 8 percent profit.

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