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CAT 2023 Slot 1 · Quant · Profit, Loss and Discount · medium

A wholesaler marks his goods 45% above the cost price and then allows two successive discounts of 20% and 10%.

Single correct option

A wholesaler marks his goods 45% above the cost price and then allows two successive discounts of 20% and 10%. Find his overall profit percentage.
  1. A. 4.4%
  2. B. 5.6%
  3. C. 6.2%
  4. D. 8.5%
Show answer and solution

Answer: (A) 4.4%

Let CP = 100. Marked price = 145. After a 20% discount: 145 × 0.80 = 116. After a further 10% discount: 116 × 0.90 = 104.4. Profit = 104.4 − 100 = 4.4%. Shortcut: net multiplier = 1.45 × 0.8 × 0.9 = 1.044, i.e., 4.4% profit directly.
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Original question written in the CAT 2023 Slot 1 pattern and checked twice for the correct answer. Not an official question paper. How we write and check questions · Corrections policy · Report a mistake