A trader increases the marked price of an article by 40% on cost and sells it after allowing a 20% discount on the marked price. Find his profit percentage.

Correct option is C

Given:
Markup percentage = 40%
Discount percentage = 20%
Formula Used:
Profit % = Markup % - Discount % - $$\frac{Markup \% × Discount \%}{100}$$​​
Solution:
Let the Cost Price be 100.
Marked Price = 100 + 40 = 140
Discount = 20% of 140 = 28
Selling Price = 140 - 28 = 112
Profit = Selling Price - Cost Price = 112 - 100 = 12
Profit percentage = 12%
Alternatively, using the successive percentage formula:
Profit % = 40 - 20 - $$\frac{40 × 20}{100}$$​​
 = 20 - 8 = 12%
Final Answer
So the correct answer is (c)