Question

A shopkeeper marks his goods $20$ $\%$ higher-than the cost price and allows a discount of $5$ $\%$. What is the percentage of his profit?

• A. $14$ $\%$
• B. $7$ $\%$
• C. $9$ $\%$
• D. $11$ $\%$

Answer 1

The correct option is A $14$ $\%$

Let the C.P. of the article $=$ Rs. $100$.
Then, M.P. of the article$=$ Rs. $100+$ Rs. $20=$ Rs. $120$
Rate of Discount $=5\%$
$\therefore$ Discount offered $=5\%$ of M.P. $=\frac{5}{100}\times$ Rs. $120=$ Rs. $6$
$\therefore$ S.P. $=$ M.P. $-$ Discount $=$ Rs. $120-$ Rs. $6=$ Rs. $114$

$\text{Profit}=$ S.P. $-$ CP. $=$ Rs. $114-$ Rs. $100=$ Rs. $14$
Profit $\%=$ $\frac{14}{100}\times 100$= $14\%$