A trader buys an article at a $20\%$ discount on the labelled price and sells it at a price that is $30\%$ above the labelled price. The profit on cost price is:

Question

A trader buys an article at a $20\%$ discount on the labelled price and sells it at a price that is $30\%$ above the labelled price. The profit on cost price is:

Option A

50%

Option B

55%

Option C

60%

Option D — Correct answer

62.5%

Correct choice.

Explanation

Let labelled price be $100$. Cost to trader $=80$, selling price $=130$. Profit $=50$ on cost $80$, so profit percent $=\frac{50}{80}\times100=62.5\%$.

Chapter Mock 4: Profit and Loss