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A trader marks his goods 25% above the cost price. If he sells them at a discoun

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Question: A trader marks his goods 25% above the cost price. If he sells them at a discount of 10%, what is his profit percentage?

Options:

  1. 12.5%
  2. 15%
  3. 10%
  4. 20%

Correct Answer: 12.5%

Solution:

Let Cost Price = 100. Marked Price = 125. Selling Price = 90% of 125 = 112.5. Profit = 112.5 - 100 = 12.5. Profit Percentage = (12.5/100) * 100 = 12.5%.

A trader marks his goods 25% above the cost price. If he sells them at a discoun

Practice Questions

Q1
A trader marks his goods 25% above the cost price. If he sells them at a discount of 10%, what is his profit percentage?
  1. 12.5%
  2. 15%
  3. 10%
  4. 20%

Questions & Step-by-Step Solutions

A trader marks his goods 25% above the cost price. If he sells them at a discount of 10%, what is his profit percentage?
  • Step 1: Assume the Cost Price (CP) of the goods is 100.
  • Step 2: Calculate the Marked Price (MP) by adding 25% to the Cost Price. MP = CP + (25% of CP) = 100 + 25 = 125.
  • Step 3: Calculate the Selling Price (SP) after applying a 10% discount on the Marked Price. SP = MP - (10% of MP) = 125 - (10% of 125) = 125 - 12.5 = 112.5.
  • Step 4: Calculate the Profit by subtracting the Cost Price from the Selling Price. Profit = SP - CP = 112.5 - 100 = 12.5.
  • Step 5: Calculate the Profit Percentage using the formula: Profit Percentage = (Profit / Cost Price) * 100 = (12.5 / 100) * 100 = 12.5%.
  • Markup and Discount – Understanding how to calculate the marked price by applying a markup percentage and then determining the selling price after applying a discount.
  • Profit Calculation – Calculating profit by finding the difference between selling price and cost price, and then determining profit percentage.
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