A trader marks his goods 40% above cost price and allows a discount of 25%. The profit he makes is:

A. 15%

B. 10%

C. 5%

D. 2%

Answer: Option C

Solution(By Examveda Team)

Let original CP = Rs. 100
Then, the Marked Price = 40% of 100 + 100 = 140
SP = 140 - 25% of 140 = 105
%Profit = $$\frac{{5 \times 100}}{{100}} = 5\% $$

Net Graphic Change Method:
100 == 40% UP ⇒ 140 == 25% discount ⇒ 105 So, % Profit = 5%