The given question is a GMAT 550 level problem solving question in Profit & Loss. This GMAT sample question tests the concept of computing profit percent made after offering a discount on the marked price.

Question 14: A merchant who marked his goods up by 50% subsequently offered a discount of 20% on the marked price. What is the percentage profit that the merchant make after offering the discount?

- 30%
- 125%
- 25%
- 20%
- 16.66%

@ INR

**Approach:** Assume cost price as $100.

Let the cost price of the goods to be $ 100.

The merchant marks his goods up by 50%.

Therefore, his marked price = cost price + mark up.

Marked price = $100 + 50% of $100 = 100 + 50 = $150.

The merchant offers a discount of 20% on the marked price.

Discount offered = 20% of 150 = $30.

Therefore, the goods are finally sold at $150 − $30 = $ 120.

Cost price is $100 and final selling price is $120.

Therefore, profit made = $20 on the cost price of $ 100.

Hence, % profit = \\frac{\text{profit}}{\text{cost price}}) × 100 = \\frac{20}{100}) × 100 = 20%.

**Merchant made a profit of 20%**

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