A trader marks his goods at 60% above the cost price and allows a discount of 25%. What is his gain percent?

Options

A. `20%`
B. `25%`
C. `30%`
D. `40%`

Answer

To solve the problem step by step, we can follow these calculations:

### Step 1: Determine the Cost Price (CP)
Let's assume the cost price (CP) of the goods is \(100\) (this makes calculations easier).

### Step 2: Calculate the Marked Price (MP)
The trader marks his goods at \(60\%\) above the cost price. Therefore, the marked price (MP) can be calculated as:
\[ MP = CP + (60\% \text{ of } CP) = 100 + (0.60 \times 100) = 100 + 60 = 160 \]

### Step 3: Calculate the Selling Price (SP)
The trader allows a discount of \(25\%\) on the marked price. The selling price (SP) can be calculated as:
\[ SP = MP - (25\% \text{ of } MP) = 160 - (0.25 \times 160) = 160 - 40 = 120 \]

### Step 4: Calculate the Profit
Now, we can calculate the profit made by the trader:
\[ \text{Profit} = SP - CP = 120 - 100 = 20 \]

### Step 5: Calculate the Gain Percent
The gain percent can be calculated using the formula:
\[ \text{Gain Percent} = \left(\frac{\text{Profit}}{\text{CP}}\right) \times 100 = \left(\frac{20}{100}\right) \times 100 = 20\% \]

### Final Answer
The gain percent is \(20\%\).

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