ABC26GN2822 · Profit and Loss

Subject: General Aptitude · Chapter: Profit and Loss · Exam: · Marks: · Difficulty:

A trader marked the price of a product in such a way that it is 20\% more than the cost price. If he allows 10\% discount on the marked price to the customer then his gain is (L.I.C.A.D.O., 2008; S.S.C., 2005, 06; C.P.O., 2007; Hotel Mgmt, 2007)

(a)8\%

(b)10\%

(c)15\%

(d)20\%

Answer

Answer (as printed): A

Explanation

Let C.P. $=₹ 100$. Then, marked price $=₹ 120$. $$\text { S.P. }=90 \% \text { of } ₹ 120=₹\left(\frac{90}{100} \times 120\right)=₹ 108 .$$ $\therefore \quad$ Profit $\%=(108-100) \%=8 \%$.

Explanation as extracted from the printed page; notation may be imperfect.

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