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    A merchant marks the price of his article 50 percent above the cost price. If he allows 20 percent discount, then what is the profit or loss percentag
    Question

    A merchant marks the price of his article 50 percent above the cost price. If he allows 20 percent discount, then what is the profit or loss percentage?

    A.

    20 percent profit

    B.

    40 percent loss

    C.

    30 percent profit

    D.

    10 percent loss

    Correct option is A

    Given:
    Marked Price (MP) is 50% above Cost Price (CP).
    Discount allowed is 20% on the Marked Price (MP).
    Formula Used:
    Selling Price (SP) = Marked Price (MP) - Discount
    Profit % = [(SP - CP) / CP] * 100 
     Loss % = [(CP - SP) / CP] * 100
    Solution:
    Let the Cost Price (CP) be 100 units.
    Marked Price (MP) = CP + 50% of CP = 100 + 50 = 150 units
    Discount = 20% of MP = 20% of 150 = 30 units
    Selling Price (SP) = MP - Discount = 150 - 30 = 120 units
    Profit = SP - CP = 120 - 100 = 20 units
    Profit Percentage = (20 / 100) * 100 = 20%
    Thus, the merchant makes a profit of 20%.

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