A tradesman marks his goods 20% above his cost price. If he allows his customer 20% discount on the marked price, how much profit or loss does he make, if any:

2% loss 4% loss 1% profit 3% profit

4% loss

Let CP = 100 then MP = 120% of CP = 120 ATQ, \ SP after giving a discount of 20% = SP = 120  × \(\frac{80}{100}\) = 96 Loss = 100 - 96 = 4%