A merchant fixes the marked price of his goods at 60% above the cost price. He sells his goods at 25% discount. His percentage of profit is:

Correct option is D

Given:
Selling price of good = 60% above the cost price
Discount = 25%

Formula Used:

Discount % = $$\frac {(MP -SP)}{MP}×100$$​​

Profit percentage = $$\frac{(SP -CP)}{CP}×100$$​​

Solution:

As per the question;

Let the CP = 100

MP = 160

​$$\text{SP} = 160 \times \frac{75}{100} = 120\\[10pt]\text{Profit Percentage} = \left( \frac{\text{SP} - \text{CP}}{\text{CP}} \right) \times 100\\[10pt]= \left( \frac{120 - 100}{100} \right) \times 100 = 20\%$$​​