A shopkeeper marks his goods 20% above cost price, but allows

A shopkeeper marks his goods 20% above cost price, but allows 30% discount for cash. His net loss is :

Let the cost price be p Mark Price

=		1 +	20		p = 1.2p
			100

Cash price =		1 −	30		1.2p
			100

= 0.7 × 1.2p = 0.84p
Net Loss = p – 0.84p = 0.16p

∴ Net loss% =	0.16p	× 100 = 16%
	p

2nd method to solve this question.
Here, r = 20%, r₁ = 30%

Profit or loss =	r ×(100 − r₁)	−r₁
	100

Profit or loss =	20 × (100 − 30)	− 30
	100

Profit or loss= 14 – 30 = –16%
Required Profit or loss = 16% loss