Multiple choice

A shopkeeper sets his goods' sales price by increasing the cost price by 10% and then allowed a discount of 10% on the same sales price. What is the profit or loss percent of his goods?

  1. 1% profit

  2. 0.9% profit

  3. 1.2% loss

  4. 1% loss

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. After 10% increase, marked price = 110. After 10% discount on this, SP = 110 × 0.9 = 99. So there's a loss of 1% on CP. The net effect is always a loss when same percentage increase and decrease are applied successively. Loss% = (10×10 ÷ 100)% = 1%.

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