A trader bought a car at 20% discount on its original price. He sold it at a…
2023
A trader bought a car at 20% discount on its original price. He sold it at a 40% increase on the price he bought it. What percent of profit did he make on the original price?
- A.
11%
- B.
12%
- C.
10%
- D.
13%
Attempted by 68 students.
Show answer & explanation
Correct answer: B
Method: use the original price as a reference and compute step by step.
Let the original price be 100.
Bought at a 20% discount: purchase price = 100 × (1 - 0.20) = 80.
Sold at a 40% increase on the bought price: selling price = 80 × (1 + 0.40) = 112.
Profit on the original price = selling price − original price = 112 − 100 = 12.
Profit percent on the original price = (12 / 100) × 100% = 12%.
Answer: 12%