Numerical answer
A trader marks an item 50% above cost price, then allows successive discounts of 10% and 4% on the marked price. What is his profit percentage? (Enter the value correct to one decimal place, without the % sign.)
Show answer and solution
Answer: 29.6
Let CP = 100. Marked price = 150.
After a 10% discount: 150 × 0.9 = 135.
After a further 4% discount: 135 × 0.96 = 129.6.
Profit = 129.6 − 100 = 29.6 on a CP of 100, i.e. 29.6%.
Tip: successive changes multiply — 1.5 × 0.9 × 0.96 = 1.296. Never just add the markup and subtract the discounts.
After a 10% discount: 150 × 0.9 = 135.
After a further 4% discount: 135 × 0.96 = 129.6.
Profit = 129.6 − 100 = 29.6 on a CP of 100, i.e. 29.6%.
Tip: successive changes multiply — 1.5 × 0.9 × 0.96 = 1.296. Never just add the markup and subtract the discounts.
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