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:
Answer & explanation
Correct answer: option 2
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%