1
$\begingroup$

i would like to know what is asked in the following question:

A shopkeeper marks his goods at $20$% profit and gives discount of $5$%,i would like to understand what is main tricky in this problem,gives discount of $5$% is it same as for example original cost was $100$ and after discount became $95$, but marks goods at $20$ percent,it means that after he got $20$% percent profit,he decrease price by $5$ %?thanks in advance

$\endgroup$
  • $\begingroup$ Does the 20% profit come after the discount or before the discount? There is some ambiguity in the statement of the problem. $\endgroup$ – JB King Aug 12 '13 at 22:05
2
$\begingroup$

If the item costs him 100 and he sells it for 120, then he is making a 20 percent profit. If he takes off 5 percent of the cost, he cuts the item down to 114, and he is now making a 14 percent profit.

| cite | improve this answer | |
$\endgroup$
2
$\begingroup$

Any ambiguity in the order of applying mark-up/discount is irrelevant

If he buys something for 100, the final price is:$$P=100\times 1.20 \times 0.95$$no matter which is multiplied first...

| cite | improve this answer | |
$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.