Question : A shopkeeper claims to sell his article at a discount of 10% but marks his articles by increasing the cost of each by 20%. His gain percentage is:
Option 1: 18%
Option 2: 12%
Option 3: 8%
Option 4: 16%
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Correct Answer: 8%
Solution :
Let $100x$ be the cost price.
Marked price = 20% above cost price = $100x + 20x$ = $120x$
Discount = 10% of marked price = 10% of $120x$ = $12x$
Selling price = marked price – discount = $120x - 12x$ = $108x$
Gain = selling price – cost price = $108x - 100x$ = $8x$
So, the gain percentage = $\frac{8x}{100x}×100$ = 8%
Hence, the correct answer is 8%.
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