Question

A trader marks his goods $20\%$ above the cost price. He then sells them at a discount of $20\%$. If the cost price is $Rs.550$, what is the gain or loss and the gain or loss percentage.

Answer 1

Cost price$=$Rs. $550$

Price of goods$=$cost price$+20\%$ of cost price

$=550+\frac{20}{100}\times 550$

$=550+110$

price of goods$=$Rs. $660$

Selling price$=$price of goods$-20\%$ of price of goods

$=660-\frac{20}{100}\times 660$

$=660-132$

$=$Rs. $528$.

Loss$=$cost price$-$selling price

$=550-528$

$=$Rs. $22$

$\%$ loss$=\frac{loss}{C.P}\times 100$

$=\frac{22}{550}\times 100$

$\%$ loss$=\frac{22}{55}\times 10$

$=\frac{2\times 10}{5}=4\%$.