Question:
Tick (✓) the correct answer:
A dealer lists his articles at 20% above cost price and allows a discount of 10%. His gain per cent is
(a) 10%
(b) 8%
(c) 9 %
(d) $8 \frac{1}{4} \%$
Solution:
(b) 8%
Let the CP be Rs 100 .
Then, marked price $=$ Rs 120
Discount $=10 \%$ of $\mathrm{MP}$
$=(10 \%$ of Rs 120$)$
$=$ Rs. $\left(120 \times \frac{10}{100}\right)$
$=$ Rs. 12
Now, $\mathrm{SP}=(\mathrm{MP})-($ discount $)$
$=\mathrm{Rs}(120-12)$
$=\mathrm{Rs} 108$
Gain percentage $=(108-100) \%$
= 8%