Multiple choice

A shopkeeper marks the prices of his goods at 25% higher than the original price. After that, he allows a discount of 12%. What profit or loss does he get? (a) 10% profit (b) 15% profit (c) 10% loss (d) 15% loss

  1. A

  2. B

  3. C

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

Successive percentage change formula: Net % = x + y + (xy/100). Here x = 25, y = -12. Net = 25 - 12 + (25 * -12 / 100) = 13 - 3 = 10% profit.

AI explanation

Assume the original price is 100. The shopkeeper marks it 25% higher, making the marked price 125. He then allows a 12% discount on this marked price, so the selling price becomes 125 x (1 - 0.12) = 110. Comparing the selling price of 110 to the original price of 100 gives a profit of 10. The shopkeeper gets a 10% profit, which corresponds to option A.

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