A trader marked the price of a commodity so as to include a profit of 25% , but allow discount of 16% on the marked price. His actual profit will be = ?

A. 16%

B. 25%

C. 5%

D. 9%

Answer: Option C

Solution(By Examveda Team)

Let CP be Rs. 100. Then, marked price = Rs. 125
$$\eqalign{ & {\text{SP}} = 84\% \,{\text{of}}\,{\text{Rs}}{\text{.}}\,125 \cr & \,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,\left( {\frac{{84}}{{100}} \times 125} \right) \cr & \,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,105 \cr} $$
∴ Profit = (105 - 100)% = 5%