A trader marks goods 20% above the cost price and then gives a discount of 10% on the marked price. What is the overall result?

💡 Solution & Explanation

Take the cost price as 100. The marked price is 120. A 10% discount on 120 is 12, so the selling price is 108. Compared with the cost of 100, that is 8% profit. Subtracting the percentages (20 − 10 = 10) is a common mistake, because the discount is on the higher marked price.