Question

A trader marks up a product by $20\%$. If he sells it at a discount of $12\%$, his net gain percentage is,

• A. 2%
• B. 8%
• C. 5.6%
• D. 6.2%

Answer 1

The correct option is C 5.6%

Let the CP of the product be ₹ 100

Thus the marked price, MP = ₹ 120

Discount on MP $=12\%$

$\therefore$ Discount $=\frac{12}{100}\times 120=₹14.4$

$\therefore$ SP = MP − discount

=120 - 14.4

=105.6

Hence his net gain percent is $5.6\%$.