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1. A tradesman marks his goods at 25% above the cost price and allows purchasers a discount of %, his profit is:
Solution:
Let his CP = Rs. 100.
Marked Price = 100 + 25% of 100 = 125.
Now, discount = % on MP
So, SP = 125 - % of 125 = Rs. 109.375.
%Gain = 9.375%.
Alternatively use graphic change method:
100(CP) == 25% Up ⇒ 125(MP) == 12.5%down ⇒ 109.375
%Profit = 9.375%