Question

A cloth seller marks a dress at $45$% above the cost price and allows a discount of $20$%. What profit does he make in selling the dress?

Answer 1

Suppose the cost price of the dress material is $Rs.100$. Since the seller marks it $45$% above the C.P., the marked price would be
$Rs.100+Rs.45=Rs.145$.
Discount of $20$% on this marked price is $=20$% of $Rs.145=\frac{20}{100}\times 145=Rs.29$.
Therefore, selling price $=Rs.145-Rs.29=Rs.116$. We get
$profit=S.P.-C.P.=Rs.116-Rs.100=Rs.16$.
Hence, profit percent $=\frac{profit}{C.P.}\times 100=\frac{16}{100}\times 100=16$.
Thus the merchant makes a profit of $16$% on the market price. (Observe it is not $45-20=25$ percent.)