A tradesman marks his goods at 25% above its cost price

A tradesman marks his goods at 25% above its cost price and allows purchasers a discount of
12 1 % for cash payment. The profit, he thus makes, is
2

Let the cost price of article = 100
∴ Marked price = ₹ 125

SP of the article =		100 −	25		% of 125
			2

SP of the article =	175	% of 125
	2

SP of the article =	125 × 175	=	875
	2 × 100		8

S.P. = ₹ 109	3
	8

∴ Gain percent =		109	3	− 100		= 9	3	%
			8				8

2nd method to solve this question.
Here, r = 25%,

r₁ = 12	1	% = 12.5 %
	2

Profit % =	r × (100 − r₁)	− r₁
	100

Profit % =	25 × (100 − 12.5)	− 12.5
	100

Profit % =	25 × 87.5	− 12.5
	100

Profit % = 21.875 – 12.5 = 9.375

Required Profit % = 9	3	%
	8

12	1	% for cash payment. The profit, he thus makes, is
	2