Question

A shopkeeper decides to sell a certain item at a certain price. He tags the price on the item by increasing the decided price by $25\%$. While selling the item, he offers $20\%$ discount. Find how many more or less percent he gets on the decided price.

Answer 1

Let the cost price be $CP=x$,

So, tagged price $=x+\frac{25x}{100}=\frac{5x}{4}$

AS, he offers $20$% discount on tagged price, So $SP=\frac{5x}{4}-(\frac{20}{100}\times \frac{5x}{4})=\frac{5x}{5}=x$

As, $SP=CP$,

So, he sells the item without any profit or loss.