A merchant marks the price of his article 20 percent above the cost price. If he allows 10 percent discount, then what is the profit or loss percentage.
Answer & explanation
Correct answer: option 1
Let the cost price = 100
Mark up = 20%
So the marked price = 120
Discount = 10%
Then the selling price = 90% of 120 = 108
Profit% = (108 - 100) × \(\frac{100}{100}\) = 8%