Multiple choice

A store purchases a watch for $100 and marks it up by 25% before selling it. Later, the store offers a 20% discount on the marked price. What is the store's profit or loss percentage on the watch after the discount?

  1. 0% (no profit, no loss)

  2. 2% profit

  3. 4% profit

  4. 5% profit

  5. 10% profit
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cost = 100. Marked Price = 125. Discount = 20% of 125 = 25. Selling Price = 125 - 25 = 100. Profit = 100 - 100 = 0.

AI explanation

The watch is marked up by 25% from its \$100 cost price, establishing a marked price of \$125. A 20% discount is applied to this marked price, calculated as 20% of \$125, which equals \$25. The final selling price becomes $100, which is exactly the original cost price, yielding a profit and loss percentage of 0%.

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