Question

A shopkeeper marks his goods 20% above cost price and allows a discount of 15%. What percent does he gain or lose?

• A. $2$ gain %
• B. $4$ gain %
• C. $2$% loss
• D. $4$% loss

Answer 1

Answer: (A)

$2$ gain %

Let the cost price (CP) be Rs 100
Marked price $=$ CP + $20\%$ of Cost Price
Marked Price $=(100+20)\%$ of $100=100+\frac{20}{100}\times 100=120$
Discount of 15% on marked price is given
Hence, selling price $=$ Marked Price - $15$% of Marked Price
Selling Price = $120-\frac{15}{100}\times 120$ = $120-18=$ Rs $102$
Profit $=SP-CP=102-100=$Rs $2$
Now, Profit Percent $=\frac{Profit}{CP}\times 100=\frac{2}{100}\times 100=2\%$