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Multiple choice

A trader marks his goods 40% above the cost price and allows a discount of 25%. The profit he makes, is

  1. 15%

  2. 10%

  3. 5%

  4. 2%

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. MP = 140 (40% above CP). Discount = 25% of 140 = 35. So SP = 140 - 35 = 105. Profit = SP - CP = 105 - 100 = 5%. The trader makes 5% profit overall.

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