Multiple choice

A trader marks $10\%$ higher than the cost price. He gives a discount of $10\%$ on the marked price. In this kind of sales how much percent does the trader gain or lose?

  1. $5\%$ gain
  2. $2\%$ gain
  3. $1\%$ loss
  4. $3\%$ loss
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let the cost price be 100. Marked price is 110. Discount of 10% on 110 is 11. Selling price = 110 - 11 = 99. The loss is 100 - 99 = 1, which is a 1% loss.

AI explanation

Using the successive discount formula a + b + (ab / 100), the effective profit or loss percentage for a 10% markup and a 10% discount is 10 - 10 + (10 * -10 / 100) = -1. The negative sign indicates a net loss, meaning the trader suffers a 1% loss.

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