A dealer lists his goods at 20% above cost price and allows a discount of 10%. His gain per cent is

Options

A. 0.1
B. 0.09
C. 0.08
D. 0.12

Answer

To find the gain percentage of the dealer, we can follow these steps:

### Step 1: Determine the Cost Price (CP)
Let's assume the cost price (CP) of the goods is Rs. 100.

### Step 2: Calculate the Marked Price (MP)
The dealer lists his goods at 20% above the cost price. Therefore, we can calculate the marked price (MP) as follows:
\[ MP = CP + (20\% \text{ of } CP) = 100 + \left(\frac{20}{100} \times 100\right) = 100 + 20 = Rs. 120 \]

### Step 3: Calculate the Selling Price (SP) after Discount
The dealer allows a discount of 10% on the marked price. We can calculate the selling price (SP) after the discount:
\[ \text{Discount} = 10\% \text{ of } MP = \frac{10}{100} \times 120 = Rs. 12 \]
Now, we subtract the discount from the marked price to find the selling price:
\[ SP = MP - \text{Discount} = 120 - 12 = Rs. 108 \]

### Step 4: Calculate the Profit
Now we can find the profit by subtracting the cost price from the selling price:
\[ \text{Profit} = SP - CP = 108 - 100 = Rs. 8 \]

### Step 5: Calculate the Profit Percentage
Finally, we can calculate the profit percentage using the formula:
\[ \text{Profit Percentage} = \left(\frac{\text{Profit}}{CP}\right) \times 100 = \left(\frac{8}{100}\right) \times 100 = 8\% \]

### Conclusion
The gain percentage of the dealer is **8%**.

---