Practice Questions
Concept Explanation
Find profit or loss after discount by comparing final SP with CP:
Profit = SP − CP | Profit% = ((SP − CP) / CP) × 100
Typical chain: CP → MP (markup) → SP (discount) → compare SP with CP.
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Q1 EasyA shopkeeper marks his goods 20% above cost price and allows a discount of 10%. His gain percent is:ExplanationSP = CP × 1.20 × 0.90 = 1.08 × CP. Gain% on CP = 8%.
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Q2 MediumA trader marks his goods 40% above cost price and allows a discount of 25%. His gain percent is:ExplanationSP = CP × 1.40 × 0.75 = 1.05 × CP. Gain% on CP = 5%.
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Q3 MediumA trader marks his goods 30% above cost price and allows a discount of 20%. His gain percent is:ExplanationSP = CP × 1.30 × 0.80 = 1.04 × CP. Gain% on CP = 4%.
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Q4 MediumIf an article is marked at 50% above cost price and a discount of 20% is allowed, the profit percent is:ExplanationSP = CP × 1.50 × 0.80 = 1.20 × CP. Profit% on CP = 20%.
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Q5 MediumA shopkeeper marks his goods 25% above cost price and allows a discount of 10%. Find his gain percent.ExplanationSP = CP × 1.25 × 0.90 = 1.125 × CP. Gain% on CP = 12.5%.
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Q6 MediumA dealer marks his goods 50% above cost price and allows a discount of 20%. His profit percent is:ExplanationSP = CP × 1.50 × 0.80 = 1.20 × CP. Profit% on CP = 20%.
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Q7 MediumAn article costing Rs. 500 is marked 30% above cost price and sold after a 15% discount on the marked price. What is the profit percent on cost price?ExplanationMP = Rs. 650. SP = 650 × 0.85 = Rs. 552.50. Profit = Rs. 52.50. Profit% = (52.50/500) × 100 = 10.5%.
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Q8 MediumAn article with cost price Rs. 960 is marked 25% above cost and sold at a 20% discount on the marked price. What is the gain or loss percent on cost price?ExplanationMP = Rs. 1,200. SP = 1,200 × 0.80 = Rs. 960 = CP. There is no profit and no loss.
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Q9 MediumA trader marks an article costing Rs. 400 at 50% above cost price and allows a 10% discount. What is his profit on the article?ExplanationMP = Rs. 600. SP = 600 × 0.90 = Rs. 540. Profit = 540 − 400 = Rs. 140.
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Q10 MediumAn article costing Rs. 800 is marked at 25% above cost price and sold after a 16% discount on the marked price. What is the profit amount?ExplanationMP = Rs. 1,000. SP = 1,000 × 0.84 = Rs. 840. Profit = 840 − 800 = Rs. 40.
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Q11 MediumAn article costing Rs. 350 is marked 40% above cost price and sold after a 20% discount on the marked price. What is the profit percent on cost price?ExplanationMP = Rs. 490. SP = 490 × 0.80 = Rs. 392. Profit = Rs. 42. Profit% = (42/350) × 100 = 12%.
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Q12 HardA trader marks his goods 60% above cost price and gives a discount of 25% on the marked price. His profit percent on cost price is:ExplanationSP = CP × 1.60 × 0.75 = 1.20 × CP. Profit% on CP = 20%.
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Q13 HardAn article costing Rs. 1,200 is marked 20% above cost price. After a discount on the marked price, it is sold at cost price. What was the discount on the marked price?ExplanationMP = Rs. 1,440. Required SP = Rs. 1,200. Discount = (240/1,440) × 100 = 16⅔%.
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Q14 HardIf goods are marked 25% above cost price and a discount of 20% is allowed on the marked price, what is the net effect on the cost price?ExplanationNet multiplier = 1.25 × 0.80 = 1.00. The selling price equals the cost price.
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DS1 Medium
A profit-analysis team must compute the trader's gain after discount. What is the gain percent on cost price?
Statement IA trader marks his goods 40% above cost price.
Statement IIHe allows a discount of 25% on the marked price.
ExplanationStatement I gives markup; Statement II gives discount rate. Together: SP = 1.40 × 0.75 × CP = 1.05 × CP, so gain% = 5%. -
DS2 Medium
For a margin review, the finance desk must decide whether the transaction is profitable after discount. Is there a profit after discount?
Statement IThe cost price of the article is Rs. 800.
Statement IIThe article is marked 25% above cost price and sold at a 20% discount on the marked price.
ExplanationStatement I gives CP only. Statement II gives markup and discount but not CP. Together: MP = Rs. 1,000, SP = Rs. 800 = CP, so there is no profit.
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DS3 Medium
A store accountant needs the profit amount after the seasonal discount. What is the profit amount after discount?
Statement IThe cost price of the article is Rs. 600.
Statement IIThe marked price is Rs. 750 and a discount of 10% is given on the marked price.
ExplanationStatement I gives CP. Statement II gives MP and discount rate. Together: SP = 750 × 0.9 = Rs. 675, profit = Rs. 75. -
DS4 Hard
A finance trainee must find the discount rate that leaves the dealer with neither profit nor loss. What is the discount percentage on the marked price?
Statement IThe cost price is Rs. 500 and the goods are marked 40% above cost price.
Statement IIThere is no profit and no loss after the discount is applied.
ExplanationStatement I gives CP and markup → MP = Rs. 700. Statement II gives SP = CP = Rs. 500. Together: discount = (200/700) × 100 = 28.57%.