A shopkeeper marks goods 40% above the cost price and then gives a discount of 25% on the marked price. What is the overall result?

💡 Solution & Explanation

Take the cost price as 100. The marked price is 140. A 25% discount on 140 is 35, so the selling price is 105. Compared with the cost of 100, that is 5% profit. Subtracting the percentages (40 − 25 = 15) is a common mistake, because the discount is on the higher marked price.