Multiple choice

A shopkeeper marks up his goods by 40% above the cost price and then allows a discount of 20% to his customers. Find his actual profit or loss percentage.

  1. 12% Profit

  2. 12% Loss

  3. 16% Profit

  4. 20% Profit

  5. 8% Profit
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A Correct answer
Explanation

Let CP = 100. Marked price = 140. Discount = 20% of 140 = 28. Selling price = 140 - 28 = 112. Profit = 112 - 100 = 12%.

AI explanation

Assume the cost price is 100. The shopkeeper marks the goods up by 40%, setting the marked price at 140. He then allows a 20% discount on this marked price, which calculates to 28. The final selling price becomes 112. Since the selling price is higher than the cost price by 12, the actual profit percentage is 12%.

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