Question

A dealer marks 20% above the cost price and allows a 20% discount. What is the profit or loss per cent?

• A. Loss of 4%
• B. Profit of 1%
• C. Loss of 1%
• D. Profit of 4%

Answer 1

Answer:

A. Loss of 4%

Let the cost price (CP) be ₹100.

Marked price

Marked 20% above CP:

$100 + 20\% \text{ of } 100 = 120$

Discount

20% discount on ₹120:

$\text{Selling Price} = 120 - 20\% \text{ of } 120$
= 120 - 24 = 96

Profit/Loss

$\text{Loss} = 100 - 96 = 4$
$\text{Loss \%}=\frac{4}{100}\times 100 = 4\%$

So, the dealer incurs a:

$\boxed{4\% \text{ loss}}$