Multiple choice

A merchant marks an article 20% above the cost price. Then, he sells it at a discount of 20%. The sale gives him

  1. 2% loss

  2. 4% loss

  3. 2% gain

  4. 4% gain
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100. Marked Price = 120. Selling Price = 120 * 0.8 = 96. Loss = 100 - 96 = 4%.

AI explanation

Using the successive percentage formula, a 20% markup followed by a 20% discount results in a net percentage change of 20 minus 20 minus 400 divided by 100, which equals negative 4%. The negative sign indicates a 4% loss.

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