Instead of a meter scale, a cloth merchant uses 120cm while buying but uses an 80 cm scale while selling same cloth if he offers a discount of 20% on cash payment what is his overall profit percent.
Answer & explanation
Correct answer: option 4
He gets 120 cm & sell only 80 cm. Hence he got the price for 120 & pays only for 80
SP after discount = 120 × \(\frac{80}{100}\) = 96
CP = 80
Profit % = \(\frac{96 - 80}{80}\) × 100 = 20%