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.

8 percent profit

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%