A trader marked the price of his commodity so as to include a profit of 25%. He allowed discount of 16% on the marked price. His actual profit was -

A. 5%

B. 9%

C. 16%

D. 25%

Answer: Option A

Solution(By Examveda Team)

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