Multiple choice

A trader marked his goods at 20% above the cost price. He sold half the stock at the market price, one quarter at a discount of 20% on the market price and the rest at a discount of 40% on the marked price. His total gain is

  1. 2%

  2. 4.5%

  3. 13.5%

  4. 15%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP=100. MP=120. Half sold at 120: gain 20 on 50 units. Quarter at 96 (20% discount): loss 4 on 25 units. Quarter at 72 (40% discount): loss 28 on 25 units. Total gain = 20-4-28 = -12 on 100 CP = -12%. But gain is 2%, so calculation needs verification. Actually: (0.5*120 + 0.25*96 + 0.25*72) / 100 = (60+24+18)/100 = 102/100 = 2% gain. Option A correct.

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