Question
A retailer marked up an item's price by 50% above its
cost. Afterward, the item was offered at successive discounts of 20% and 10%. What was the percentage profit earned by the retailer on this transaction?Solution
Let the cost price of the article = Rs. 100 So the marked price of the article = 1.50 × 100 = Rs. 150 Selling price of the article = 150 × 0.80 × 0.90 = Rs. 108 So the profit percent = (108 – 100)/100 × 100 = 8%
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