A shopkeeper marks goods 60% 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 160. A 25% discount on 160 is 40, so the selling price is 120. Compared with the cost of 100, that is 20% profit. Subtracting the percentages (60 − 25 = 35) is a common mistake, because the discount is on the higher marked price.