Multiple choice

A commercial merchant marks his trading goods at 25% above their actual cost price, but introduces a 10% discount at the point of sales billing. Find his net profit yield percentage.

  1. 11.5%

  2. 12.5%

  3. 13.5%

  4. 15%

  5. 20%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let cost price be 100. Marked price is 125. A 10% discount on 125 is 12.5. Selling price = 125 - 12.5 = 112.5. Net profit = 112.5 - 100 = 12.5%.

AI explanation

Assume the cost price is 100. The merchant marks the goods at 25% above the cost price, making the marked price 125. A 10% discount is applied to this marked price, which is 12.5. The final selling price becomes 125 - 12.5 = 112.5. Comparing this to the original cost price, the net profit yield percentage is 12.5%.

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