Profit and Loss – 03

3. An article was purchased for Rs 78,350. Its price was marked up by 30%. It was sold at a discount of 20% on the marked up price. What was the profit percent on the cost price? [IBPS PO, (17.06.2012)]

(1) 4%        (2) 7%         (3) 5%        (4) 3%       (5) 6%

Detailed Explanation: First Method: Let cost price (CP) be 100. Then, marked price (MP) is 30% above the CP. i. e., MP is 100 + 30 = 130. 20% discount is given on MP. So, discount is 20% of 130= 26. Therefore,  Selling Price (SP) is 130 – 26 = 104. Profit = 104 – 100 = 4. So, profit percent is 4% Ans.

Second Method: When any quantity is changed by x% and y% successively, then the quantity is changed by