Question

A shopkeeper marks his goods at 25% above his cost and allows a discount of 20% on cash payments. In the transaction he gets______________.

• A. 5% profit
• B. 5% loss
• C. 10% loss
• D. No profit no loss

Answer 1

The correct option is D No profit no loss

Let, the cost price be Rs. x

The shopkeeper marks his goods at 25% above.

$\therefore$ The price becomes $x+x\times \frac{25}{100}=x+\frac{x}{4}=\frac{x}{5}$

Now again he allows a discount of 20 % on this price

$\therefore$ The price becomes $\frac{5x}{4}-\frac{5x}{4}\times \frac{20}{100}=\frac{5x}{4}-\frac{x}{4}=x$

This is the final price in which he sells the goods,

$\therefore$ In the transaction he gets no profits no loss.

$\therefore$ option D is correct.