Multiple choice

A radio dealer marks a radio with a price which is 20% more than the cost price and allows a discount of 10% on it. His gain percent is

  1. 10%

  2. 12%

  3. 15%

  4. 8%

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

Let CP = 100. Marked Price = 120. Discount 10% of 120 = 12. Selling Price = 120 - 12 = 108. Gain = 108 - 100 = 8%.

AI explanation

Assume the cost price of the radio is Rs. 100, so the marked price, which is 20% more than the cost price, becomes Rs. 120. The dealer allows a 10% discount on the marked price, making the selling price 90% of 120, which equals Rs. 108. The gain is the selling price minus the cost price, so 108 minus 100 gives a profit of Rs. 8. Using the profit percentage formula, (Profit divided by Cost Price) times 100, we get (8 divided by 100) times 100, resulting in a gain of 8%.

Keep practicing — related questions