Multiple choice

A merchant who marks his goods up by 50% offers a discount of 20%. What is the percentage profit that the merchant makes after offering the discount?

  1. 25%

  2. 15%

  3. 30%

  4. 20%

  5. 10%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let the cost price be 100. The marked price is 150. A 20% discount on 150 is 30, making the selling price 120. The profit is 120 - 100 = 20, which is 20%.

AI explanation

Let the cost price of the goods be 100 rupees. Marking the goods up by 50% sets the marked price to 150 rupees. Applying the 20% discount gives a selling price of 150 times 0.80, equaling 120 rupees. The percentage profit is the final selling price minus the cost price, yielding a 20% profit.

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