A tradesman marks his goods at 20% above the cost price.

A tradesman marks his goods at 20% above the cost price. He allows his customers a discount of 8% on marked price. Find out his profit %.

Suppose C.P. = 100
On 20% above S.P. = 120

On discount of 8% = 120 − 120 ×	8
	100

New S.P. = 120 −	48	= 120 − 9.6 = 110.4
	5

Gain = 110.4 – 100 = 10.4%
2nd method to solve this question
Here, r = 20%, r₁ = 8%

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

Profit or loss =	20 ×(100 − 8)	− 8
	100

Profit or loss =	20 × 92	− 8
	100

= 18.4 – 8
Required Profit or loss = 10.4% profit