Delhi Police Constable Exam Model Paper 7

Given:
Amod purchased a pen for Rs. 860. He mark up the price by 30% and gives a discount of 10% while selling to Binod
Concept Used:
Effective change in percentage is obtained after adding successive percentage changes.
Calculation:
⇒ CP of pen = Rs. 860
⇒ SP of pen = 860 × 1.3 × 0.9 = Rs. 1006.2
∴ effective profit percentage for Amod $=\left(\frac{\left(1006.2-860\right)}{860}\right)\times 100=\left(\frac{146.2}{860}\right)\times 100=17\%$