PrepRung
Sign inSign up free

CAT 2025 Slot 2 · Quant · Profit, Loss and Discount · easy

A trader marks up his cost price by 40% and then offers a 25% discount on the marked price.

Single correct option

A trader marks up his cost price by 40% and then offers a 25% discount on the marked price. What is his overall profit percentage?
  1. A. 3%
  2. B. 5%
  3. C. 8%
  4. D. 10%
Show answer and solution

Answer: (B) 5%

Let CP = 100. Marked price = 140. After 25% discount, SP = 140 × 0.75 = 105. Profit = SP − CP = 5, so profit% = 5%. Note that a 40% markup followed by 25% discount never fully cancels because discount is applied on the larger marked price.
Report a mistake

Original question written in the CAT 2025 Slot 2 pattern and checked twice for the correct answer. Not an official question paper. How we write and check questions · Corrections policy · Report a mistake