A trader marked the price of a product in such a way that it is 20% more than the cost price. If he allows 10% discount on the marked price to the customer then his gain is -

Solution (By Examveda Team)

Let Cost price= Rs. 100
Then,
Marked price = Rs. 120
Selling price = 90% of Rs. 120
$$\eqalign{ & = {\text{Rs}}{\text{.}}\left( {\frac{{90}}{{100}} \times 120} \right) \cr & = {\text{Rs}}{\text{.108}}{\text{}} \cr} $$
∴ Profit % = (108 - 100) % = 8%