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 :

Question

Question

This question was previously asked in

SSC CGL 2022 Tier-I Official Paper (Held On : 05 Dec 2022 Shift 2)

Answer 1

Given:

A tradesman marks his goods 20% above his cost price.

He allows his customer 20% discount on the marked price.

Concept used:

Final percentage change after two successive increments of A% and B% = \((A + B + {AB \over 100})\%\)

Calculation:

His profit or loss percentage

⇒ \({(20 + (-20) + \frac {20 \times -20}{100})}\%\) (Here, the 20% discount is taken as a negative increment in contrast to the 20% mark up)

⇒ -4% (Negative value indicates loss)

∴ He makes a 4% loss.