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
Cost Price (C) = 600
Marked Price (M) is 50% higher = 1.5*600 = 900
Discount = 20% of M = 0.2*900 = 180
Selling Price (S) = 900-180 = 720
Profit% = Profit*100/C = (720-600)*100/600 = 20
The correct answer is Option (1) → 20%