Multiple choice

If a retailer marks up his price by 30 % and then allows a 30 % discount, what is his percentage profit or loss?

  1. 9 % gain

  2. 5% loss

  3. 9 % loss

  4. 6 % gain
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If a price is increased by x% and then decreased by x%, the net change is always a loss of (x^2 / 100)%. Here, (30^2 / 100) = 900 / 100 = 9% loss.

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