Question

A merchant marks his wares 40% more than the real price and allows 20% discount. His profit is?a) 20%
b) 18%
c) 16%
d) 12%
e) None of these

Answer 1

Answer:

D) 12%

Step-by-step explanation:

The merchant marks his wares 40% more than the real price.

The merchant also allows 20% discount.

Let the real price = 100

After a 40% mark up, the price becomes

(40 /100) * 100

= 40

So we have 100 +40= 140

Discount of 20% = (20/100)* 140

= 28

The price is 140 - 28 = 112

Profit = 112 -100

= 12%