Question

A trader marks his goods at $40\%$ above the cost price and allows a discount of $25\%$. What is his gain percentage?

• A.
• B.
• C.
• D.

Answer 1

The correct option is C

Let the cost price be Rs. 100.
Then, the marked price $=100+\frac{40}{100}\times 100$ = Rs. 140
Discount = $25\%of140=\frac{25}{100}\times 140=\frac{140}{4}$ = Rs. 35
Selling price = marked price – discount = 140 – 35 = Rs. 105
Profit percentage =$\frac{Profit}{C.P}\times 100=\frac{105-100}{100}\times 100=5\%$