A trader marks his goods at `20%` above cost price. If he allows a discount of `5%` what is his final profit `%`
A. `12%`

B. `14%`

C. `15%`

D `18%`

Options

A. A
B. B
C. C
D. D

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) of the goods be \(100\) (this is a convenient choice to simplify calculations).

### Step 2: Calculate the Marked Price (MP)
The trader marks his goods at \(20\%\) above the cost price.
- Marked Price (MP) = Cost Price + \(20\%\) of Cost Price
- MP = \(100 + 0.20 \times 100 = 100 + 20 = 120\)

### Step 3: Calculate the Discount
The trader allows a discount of \(5\%\) on the marked price.
- Discount = \(5\%\) of Marked Price
- Discount = \(0.05 \times 120 = 6\)

### Step 4: Calculate the Selling Price (SP)
The selling price is calculated by subtracting the discount from the marked price.
- Selling Price (SP) = Marked Price - Discount
- SP = \(120 - 6 = 114\)

### Step 5: Calculate the Profit
Profit is determined by subtracting the cost price from the selling price.
- Profit = Selling Price - Cost Price
- Profit = \(114 - 100 = 14\)

### Step 6: Calculate the Profit Percentage
To find the profit percentage, use the formula:
\[ \text{Profit Percentage} = \left(\frac{\text{Profit}}{\text{Cost Price}}\right) \times 100 \]
Substituting the values:
\[ \text{Profit Percentage} = \left(\frac{14}{100}\right) \times 100 = 14\% \]

### Final Answer
The final profit percentage is \(14\%\).