A shopkeeper bought an item for ₹600 and marked on it 50% higher than its cost price. He allowed 20% discount on it. Find his profit percentage.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 20%
The discount is taken on the marked price, and the profit is reckoned on the cost price.
Marked price (50% above ₹600): ₹900
Selling price after 20% discount: \(900\times0.8=\) ₹720
Profit: ₹720 − ₹600 = ₹120
Profit percentage: \(\displaystyle\frac{120}{600}\times100=20\%\)