Multiple choice

A trader marks his goods 50% above the cost price. He then sells them after allowing two successive discounts of 20% and 10% on the marked price. Find his net profit or loss percentage.

  1. 12% Profit

  2. 10% Profit

  3. 8% Profit

  4. 5% Loss

  5. 2% Loss
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. MP = 150. Successive discounts of 20% and 10%: 150 * 0.8 = 120; 120 * 0.9 = 108. Selling Price = 108. Profit = 8%.

AI explanation

Assume the cost price is 100, making the marked price 150. Applying the equivalent discount formula for successive discounts of 20% and 10%, the overall discount is 20 plus 10 minus 2, equal to 28%. The final selling price is 72% of 150, which calculates to 108. Comparing this selling price to the cost price of 100 yields an 8% profit.

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