Multiple choice

A shopkeeper marks the price of an item 20 percent above its cost price and then offers a discount of 10 percent on the marked price. What is the final profit percentage?

  1. 6%

  2. 8%

  3. 10%

  4. 12%

  5. 18%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

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

AI explanation

Using the net percentage change formula, when a markup is followed by a discount, the net percentage change is (a - b - ab/100). Substituting the markup (a) of 20 and the discount (b) of 10, we get (20 - 10 - (20 x 10)/100) = 10 - 2 = 8%. The final profit percentage is 8%.

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