A tradesman marks his goods at 20% above the cost price. He allows his customers a discount of 8% on marked price. Then his profit percent is

Options

A. 0.122
B. 0.097
C. 0.104
D. 0.11

Answer

To solve the problem step by step, let's break it down:

### Step 1: Determine the Cost Price (CP)
Let the cost price (CP) be \( 100x \).

### Step 2: Calculate the Marked Price (MP)
The tradesman marks his goods at 20% above the cost price. Therefore, the marked price (MP) can be calculated as:
\[ MP = CP + 20\% \text{ of } CP = 100x + 0.20 \times 100x = 100x \times \frac{120}{100} = 120x \]

### Step 3: Calculate the Selling Price (SP) after Discount
The tradesman allows a discount of 8% on the marked price. The selling price (SP) can be calculated as:
\[ SP = MP - 8\% \text{ of } MP = 120x - 0.08 \times 120x = 120x \times \frac{92}{100} = 120x \times 0.92 = 110.4x \]

### Step 4: Calculate the Profit
To find the profit, we subtract the cost price from the selling price:
\[ \text{Profit} = SP - CP = 110.4x - 100x = 10.4x \]

### Step 5: Calculate the Profit Percentage
The profit percentage can be calculated using the formula:
\[ \text{Profit Percentage} = \left( \frac{\text{Profit}}{\text{CP}} \right) \times 100 = \left( \frac{10.4x}{100x} \right) \times 100 = 10.4\% \]

### Final Answer
The profit percentage is **10.4%**.

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