A shopkeeper marks the price of an item keeping 20% profit.

A shopkeeper marks the price of an item keeping 20% profit. If he offers a discount of
12 1 % on the marked price, his gain percent will be
2

Let the cost price be ₹ 100.
∴ Marked price = ₹ 120

SP = 87	1	% of 120
	2

=	175	× 120 = ₹ 105
	200

∴ Gain percent = 5%
Gain percent = 5%
2nd method to solve this question.
Here, r = 20%,

r₁ = 12	1	%
	2

Profit % =	r × (100 − r₁)	− r₁
	100

Profit % =	20 × 175	− 12.5
	200

Required Profit % = 17.5 – 12.5 = 5%

12	1	% on the marked price, his gain percent will be
	2