SOLUTION: a trader marked his goods at 20% above the cost price if he allows his customer a 10% discount find his profit percent

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Question 1084360: a trader marked his goods at 20% above the cost price if he allows his customer a 10% discount find his profit percent
Answer by Theo(13342)   (Show Source): You can put this solution on YOUR website!
let c be the cost.

he marks it up 20%.

let m be the marked up price.

m = c + .20 * c = 1.2 * c

he discounts it 10% off the marked up price.

let d be the discount price.

d = m - .10 * m = .9 * m

since m = 1.2 * c, replace m with 1.2 * c and you get the discounted price as:

d = .9 * (1.2 * c)

simplify to get d = 1.08 * 1.2 * c = 1.08 * c

he is selling at 8% above cost.

his profit margin is therefore 8%.

for example:

assume the cost is 100 dollars.

he marks it up 20% so the marked up price is 120 dollars.

he discount it 10% off the market up price, so he sells it at 90% of 120 dollars which is equal to 108 dollars.

his cost was 100 dollars.
his discount price was 108 dollars.
his profit is 8 dollars which is 8% more than his cost.


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